The Process:
The prep overlay is actually 2 charts. The first is the original morning prep which is posted before the market opens. The second is an updated chart containing the original price action and the NEW price action that occurred between the original posting of the prep and the close.
The new chart is actually pasted on the original and the background is made transparent. This allows you to see all the contents of the original prep (zones, premise, grey arrows) with the new price action populated on the original chart.
If you look at the side of the charts where the price and time is at, you will often see the data slightly blurred because it is actually 2 sets of data laid over each other.
Black/Green Bars Vs. Green Bars:
You will see 2 different colored OHLC bars on a prep overlay. This is done for two reasons. The first is to demonstrate that the new price action lines up with the old so the reader can see that the same sample of data was used for both charts. The second is to illustrate the difference between the original price action and the new.
Remember that the original support/resistance zones, premise, and grey arrows are produced prior the the market open.
The black/green bars are the original price bars contained on the initial morning prep posting. The black are from the original chart and the green overlay highlights are from the new chart.
The green only bars are the new price action that occurred after the prep was posted. These are used to measure how the support and resistance zones held up.
A prep that was well done will have the green bars respecting the blue and magenta lines that were created on the original prep. You can also check to see if the grey arrows match the price but this can not be counted on for trades.
Please see chart below:
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