The purpose of the bar color EFS file is to show periods of illogical volatility or periods when all of the participants that make a market are not present. When all of the normal market participants are not present we will see volume bars that have a wide range. A normal 2401 volume bar is about 2-4 ticks wide. In a normal bar all of the buyers and sellers that normally make a market are present. What is very important to note here is it is not volatility that makes a market illogical, it is the lack of buyers and sellers that makes illogical volatility.

In the chart below you will see a "normal" looking chart. There are only 4 colored bars on the chart. This chart is final hour of trading on 7-24-07, a day that can easily be described as highly volatile. The trading is normal because all of the participants, buyers and sellers, trading desks, hedge funds, etc were in the market.

The setting for the chart below was to identify all bar that are 6 ticks or greater. The bars will paint red on an up bar and green for a down bar, and this coloring will be explained on a later page. The logic behind the idea is explained on Page 4.