Tirone Levels Technical Indicator

Tirone levels are a series of horizontal lines plotted on trading charts to predict possible support and resistance levels, developed by John Tirone. They are very much similar to Fibonacci retracements and Quadrant lines. Tirone levels are used mainly by short-term traders, especially day traders; they are also useful for long-term trading.


Tirone levels are calculated based on lowest low and highest high values for a given period of time. There are two different methods of calculating Tirone levels, Midpoint method and Mean method.

In midpoint method, the center line (mid point) is calculated by subtracting highest high (HH) value from lowest low (LL) and dividing the result by 2. Top line is drawn at 1/3 difference from HH to LL, and bottom line is drawn at 2/3 difference from HH to LL.

In mean method, there are 5 asymmetric lines. They are calculated as follow,

1. Adjusted mean (AM) = (HH + LL + Recent closing price) /3.
2. Extreme high = AM + (HH - LL).
3. Regular high = 2AM – LL
4. Regular low = 2AM – HH
5. Extreme low = AM – (HH - LL)

Interpreting Tirone levels is easy, the upper level is the immediate possible resistance and lower level is the possible support. For better accuracy, it is advisable to use Tirone levels in conjunction with other technical indicators.

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