The Target Trace image is merely a representation of the CTX's TID analysis, mapped to the Smartscreen. As such, soil conditions should not affect the Target Trace any more than they do the actual detection of a target. Naturally, if detecting a target is difficult due to soil conditions, then having it appear in the proper location on the Smartscreen will be equally as difficult.
Think of the Smartscreen as a piece of graph paper, 35 rows tall and 50 rows left to right. When a target passes under the coil, it's FE and CO properties are identified and represented by a target mark being placed on the SmartScreen. The placement of that mark correlates with the TID numbers. For example, a zinc cent reading 12/37 would have it's' target mark sitting at 12 rows down and 37 rows across, left to right. If you then sweep over a second target, lets say a nickel, that nickel TID of 12/14 will place a target mark at the coordinates of 12 down and 14 across, left to right. And in doing so, the most recent nickel mark will replace the previous penny mark. By the audio response, you know there are two targets. But you only see the Smartscreen marks of the most recent target that has passed under the detection field of the coil. Implementing Target Trace allows the "marks" of each target to "hang around" so you have the ability to see more than one target at a time.
The "red" that you mentioned is intensified proportional to the target signal. This can be affected by the size of the targets, the depth of the targets, and in Target Trace Pinpoint, the number of times you sweep back and forth over the targets. Generally the "red" will be centered on the TID values, as positioned on the Smartscreen. But remember, TID values can vary when multiple targets are being analyzed simultaneously. JMHO HH Randy