Five Tirone Levels - indicator for MetaTrader 5

Real author:

John Tirone

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.

The levels are calculated the following way:

where:

• Hhigh (Highest High) - the highest price for a certain period, for example, 20 bars;
  
• Llow (Lowest Low) - the lowest value for a certain period, for example, 20 bars;
• Close - close price of a current bar.