Don’t Catch A Falling Knife.

You can cut yourself or at least hurt your deposit. This rule follows directly from the previous rule. A falling knife is called sharp and highly volatile movements, usually associated with the breakout of key levels zones or the release of important news.

Don’t Catch A Falling Knife

It is not possible to determine when a strong and directed movement is over. It is much more profitable to try to join this movement on kickbacks. “A falling knife” does not mean that the movement can be associated only with the fall in the value of the asset. This rule also works for sudden upward movements. “Short squeeze” just from this series. However, this common expression – “falling knife” very clearly reflects the property of financial assets to fall in price much sharper and more volatile than growth. And this applies not only to the currency market, but also to other financial assets

Sorry i am not Painter :)

Good luck
Alireza