Double/multiple tops are characterized by resistance points, while double/multiple bottoms are characterized by support points. These are some of the most used chart patterns.

These chart patterns can be used as scalping strategies as they frequently appear and yield quick results.

As we can see in the image, a double top occurs when the price reaches a particular high point, retraces/reverses, and then rallies back to a similar high point and then declines. Therefore, price will hit a certain resistance point twice.

A double bottom occurs when the price reaches a particular low point, retraces/reverses, decreases to a similar low point, and then increases. Therefore, price will hit a certain support point twice.

A double top signals a sell at the neckline, while a double bottom signals a buy at the neckline.

Other than double tops and bottoms, there can also be multiple tops and bottoms, such as a triple top or triple bottom. This implies that price hit a specific resistance or support point not twice but thrice.

The image above shows how a triple top and triple bottom would look. We can see that price hits the resistance point thrice for a triple top and the support point thrice for a triple bottom.

Now let us look at multiple tops and bottoms on 5-minute charts.

In the image above, we see a double-bottom pattern. First, price drops hit a certain support zone, then increases and hit a certain resistance zone before dropping once again, hitting the previous support zone, and then bouncing back up. The area shaded in red is the pattern’s neckline, and a long position should only be opened once price breaks through the resistance at the neckline. As shown in the image, price increases once it breaks through the neckline; therefore, a long position opened at that point is profitable.

In the image above, we see a double top pattern. Price rises, hits a certain resistance zone, declines, and hits a certain support zone before rising once again, hitting the previous resistance zone, bouncing off, and decreasing. The area shaded in red is the pattern’s neckline, and a short position should only be opened once price breaks through the support at the neckline. As shown in the image, price declines once it breaks through the neckline; therefore, a short position opened at that point is profitable.