Now we will look at a chart from 7-26-07. There are two important things to notice about this chart. The first is the large number of red and green colored bars. The second is the huge swings in price that are occurring in this 45 minute period.
Here is the same chart with the ZoneTraderPro zones placed on it. This chart has some very good trades but also several losing trades. You will also notice that the trades and zones are very tightly bunched together leading to a very confusing chart. This is the concept of illogical volatility. Some of the trades were less than a minute or two in duration.
