Falling Knife
a.k.a. Catching a falling knife
A price that is dropping fast.
In plain English
A price that is dropping fast. Trying to buy it before it stops is called catching a falling knife.
A falling knife is a market in free fall. Buying because it 'looks cheap' is risky: there is no sign the selling has stopped, and the price can keep slicing lower.
The old advice: let the knife hit the floor and stop bouncing before you pick it up. In chart terms, wait for evidence like a higher low or a break of the downtrend line.
Keep this word for good
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