The ZoneTrader™ is a predefined market arena for active trading that seeks to utilize intra period [intraday, daily, weekly and monthly] trading action to determine future market direction. Each zone is numbered and specifically labeled to profile and interpret the precise condition of the market and provide the trader a specific description of where the market is and what it is trying to do.

The ZoneTrader™ accomplishes this by analyzing the integrals of the market [volume, open interest, volatility, range, and trend] as the market moves from zone to zone throughout the periods being measured. By understanding the condition of the market as derived by The ZoneTraderTM and combining that knowledge with the analysis of the integrals, the active trader will be able to develop or enhance their trading strategies.

The ZoneTrader™ also seeks to optimize the entry points for trades which is key for maximizing profit potential. The potential for profit that is offered by each market is another key element. If the market has a small intraday range and a lack of liquidity, then the trader should change markets. However, if the market presents a large intraday range and high volume, thereby providing profit potential and the trader is not successful, the the trader must then change trading methods or strategies. This is the underlying principle for creation of The ZoneTrader™.

The ZoneTrader™ is designed to be applied to auction markets where price is derived from the negotiation among market participants. The market has three conditions: balanced, trending, or transitioning. The ZoneTrader™ seeks to profile the market and provide the trader with a description that determines one of these conditions.

As the market moves from balanced to attempting to reverse, to trending and back to balance, The ZoneTrader™ will profile these movements. This will enhance the performance of the traders' methodologies by providing sentiment and reducing human emotion.

The Derivative Concepts, Inc. original proprietary formula for deriving intraday support and resistance levels is the underlying instrument that leads to the construction of zones.

The next level will be the profiling method derived from the The ZoneTrader™ and will continue to enhance the traders current methodologies and strategies as well as reduce the impact that one's emotion can play up on intra-period trading decisions and entry prices.

The ZoneTrader™ is partitioned into 13 zones using support and resistance levels. Each zone is also named, relative to the anticipated movement of the market price action. The zones are numbered in a back and forth pattern. Bullish zones are designated by even numbers and bearish zones are denoted by odd numbers.