Tirone Levels (Mean)

 
Tirone Levels are a series of horizontal lines that identify support and resistance levels. They were developed by John Tirone.

Tirone Levels can be drawn using either the Midpoint 1/3-2/3 method or the Mean method. Both methods are intended to help you identify potential support and resistance levels based on the range of prices over a given time period. The interpretation of Tirone Levels is similar to Quadrant Lines.

Mean levels are displayed as five lines (the spacing between the lines is not necessarily symmetrical). The lines are calculated as follows:

  • Extreme High:
    Subtract the lowest low from the highest high and add this value to the Adjusted Mean.
  • Regular High:
    Subtract the lowest low from the value of the Adjusted Mean multiplied by two.
  • Adjusted Mean:
    This is the sum of the highest high, the lowest low, and the most recent closing price, divided by three.
  • Regular Low:
    Subtract the highest high from the value of the Adjusted Mean multiplied by two.
  • Extreme Low:
    Subtract the lowest low from the highest high and then subtract this value from the Adjusted Mean.

These lines are depicted in the following chart:

MeanTirone.gif (6701 bytes)

Because this is an interactive drawing feature, the user normally create the lines by selecting the first extreme point and then dragging the mouse to the other extreme point. When the mouse is released, Chart FX FE will make all the necessary calculations and draw the lines. Please note. it is not necessary that the user clicks on a specific data point as the Tirone lines will be calculated according to the axis scale and the position the mouse was released.