|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.
Midpoint levels are calculated by finding the highest
high and the lowest low during the time period being analyzed. The lines are then
calculated as follows:
- Top line:
Subtract the lowest low from the highest high, divide this value by three, and then
subtract this result from the highest high.
- Center Line:
Subtract the lowest low from the highest high, divide this value by two, and then add this
result to the lowest low.
- Bottom Line:
Subtract the lowest low from the highest high, divide this value by three, and then add
this result to the lowest low.
These lines are depicted in the following chart:
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.