Here we see Della and Jim they live in a flat their thinking about what to get each other for Christmas its Christmas eve and they have nothing for each other.
Climax
Della only has $1.87 and she thinks she needs more because that is not enough for a priceless gift for Jim.
Falling Action
She goes and sells her hair for $20 and now she has $21.87
Resolution
They exchange gifts but what Jim doesn't know is that she cut her hair and what Della doesn't know is that he sold his watch.
They figure out an idea so they get a trunk and they put there gifts in it.
They had a baby named Hickory Dickory Lynn Della grew her hair back out and Jim got a new watch despite their mistakes they still loved each other and lived together in harmony.