Tirone Levels are a set of the appropriate support and resistance levels based on a trading range for a certain period of time.
Usually they are used only to improve visual perception of the market price moves. In this case, the Midpoint method is used for the calculation of all three Tirone Levels.
Market minimum and maximum for a certain period of time are calculated at first.
The levels are calculated the following way:
Tirone Level 1 = Hhigh - (Hhigh-Llow)/3
Tirone Level 2 = Llow + (Hhigh-Llow)/2
Tirone Level 3 = Llow + (Hhigh-Llow)/3
Application of Tirone levels resembles the application of Fibonacci correction levels - we should buy when the price crosses Tirone level downwards and sell when the price crosses the level upwards.
Both types of levels are interpreted in a similar way: both methods of graphical analysis use a certain per cent value between a maximum and a minimum to generate the lines and 50% as a probable correction level. Tirone Levels also resemble Quadrant Lines.
Like many other technical analysis methods, Tirone Levels have their followers being one of the simplest trading signals system based on support and resistance, though a considerable amount of traders who work with the intervals less than a day claim that they are less accurate in comparison with other similar methods.
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/457
New comments added to a chart without deleting existing ones.3_Level_ZZ_Semafor
The simple indicator which displays minimums and maximums of the eldest, middle and short periods using semaphore dots.