Indicators: Five Tirone Levels

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Five Tirone Levels:

The indicator consists of five Tirone Levels that are, in fact, support and resistance levels based on a trading range for a certain period of time.

Tirone Levels are a series of several successively decreasing horizontal lines used to determine possible support and resistance areas on a price chart.

This technical analysis method is developed by John Tirone in his book "Classical Technical Analysis as a Powerful Trading Methodology". The system based on five Tirone levels is constructed using the Adjusted Mean method.

This method generates 5 often non-symmetrical lines.

  1. Adjusted average value (Adjusted Mean) is found at first;
  2. The next line is found by deducting the minimum from the Adjusted Mean multiplied by 2;
  3. The third line is the Adjusted mean itself (adjusted average);
  4. The next line is calculated by deducting the maximum from the Adjusted Mean multiplied by 2;
  5. The lowest line is calculated by deducting the minimum from the maximum and deducting this result from the Adjusted Mean.

Author: Nikolay Kositsin

Five Tirone Levels

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