Tirone Levels (developed by John Tirone, surprisingly enough!) are a set of proprietary support and resistance levels based on the range of a stock's prices over a given time period which makes their interpretation similar to Quadrant Lines. As a support and reistance strategy, Tirone Levels have their admirers, although most day traders do not believe them to be as accurate as SureFireThing Camarilla Equation Levels.

There are 2 ways to calculate Tirone Levels, the first is known as the Midpoint Method. Find the highest high and the lowest low during the time period under consideration. To generate the top line ,subtract the lowest low from the highest high, divide this value by three, and then subtract this result from the highest high. To generate the center Line, subtract the lowest low from the highest high, divide this value by two, and then add this result to the lowest low. The bottom Line is generated by subtracting the lowest low from the highest high, dividing this value by three, and then adding this result to the lowest low.

Th other method is known as the mean method, which gives you 5 lines (often spaced asymetrically). To generate the extreme high, subtract the lowest low from the highest high and add this value to the Adjusted Mean. The 'regular high requires you to subtract the lowest low from the value of the Adjusted Mean multiplied by two. To generate the adjusted mean, sum the highest high, the lowest low, and the most recent closing price, then divide by three. The regular low is calculated by subtracting the highest high from the value of the Adjusted Mean multiplied by two, while the extreme Low requires you to subtract the lowest low from the highest high and then subtract this value from the Adjusted Mean.

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