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Overview

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

Interpretation

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.

Example

The following chart shows Midpoint Tirone Levels on Lincoln National.

Calculation

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:

Subtract the lowest low from the highest high, divide this value by three, and then subtract this result from the highest high.**Top line:**

Subtract the lowest low from the highest high, divide this value by two, and then add this result to the lowest low.**Center Line:**

Subtract the lowest low from the highest high, divide this value by three, and then add this result to the lowest low.**Bottom Line:**

Subtract the lowest low from the highest high and add this value to the Adjusted Mean.**Extreme High:**

Subtract the lowest low from the value of the Adjusted Mean multiplied by two.**Regular High:**

This is the sum of the highest high, the lowest low, and the most recent closing price, divided by three.**Adjusted Mean:**

Subtract the highest high from the value of the Adjusted Mean multiplied by two.**Regular Low:**

Subtract the lowest low from the highest high and then subtract this value from the Adjusted Mean.**Extreme Low:**

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