How would you set up a dynamic range based on this condition

I may have missed the point here, but the below three formulas should take care of dynamic named ranges.
Presumably if column C is not zero then you would want to plot D & E on the chart?

Formula:

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BSB

As I asked in your other thread on the same topic, is there a specific step or part of creating a dynamic named range that you are having trouble implementing? It might be easier for us to help you if we had a better idea what part you "can't get to work".

I suggest that you have your data in a table and don't enter values until you have them. With data in a table, the chart will expand with the added data. I tricked the chart into accepting the X values as X axis values by first entering some dates, created the chart then entered the proper values for the X axis (changing the formatting of the data of course).

This is the file I am working on, as you can see I want the chart to display the fields with non zero values only. And if the cells are zero I don't want them to be displayed on the chart. To do this I need the chart to only expand its range if the cells are non zero otherwise keep the range the same

unnobtanium: If you compare your spreadsheet with BSB's spreadsheet, I think you will find that, where you defined your names with relative references, BSB defined names using absolute references. While I'm sure there are cases you would want to define a name with relative references, most cases (including this one) will want to have names defined using absolute references. You might try going back to your spreadsheet and defining your names with absolute references to see if you get the same result as BSB.

I don't have a good answer, yet. The 0,0 point in the chart suggests that your named ranges are returning at least one of the 0,0 points. My debugging strategy so far:

1) Select G10:G24, insert named range =filtertime and ctrl-shift-enter. This enters the resulting array that the named range is supposed to return. This allows to inspect the named range and see if it is returning what is expected. I note that it is returning the 5 non-zero values and 5 zeroes before returning N/A (indicating end of range). It would seem that something is not quite right.
2) Inspecting the name definition, I ask myself what the countif is returning. So, I enter =COUNTIF(C10:c24,"<>0") in a cell. It returns 10 (not 5 like expected). It looks like something is wrong with the countif part of the function. I have to admit that I don't know what is wrong with it.
3) Test each entry in C10:C24 with something like =c10<>0. TRUE is returned for the non-zero values, and FALSE is returned for the zero values.
4) Since all of the non-zero values are >0 (none are less than zero), I edit the countif function accordingly =COUNTIF(c10:c24,">0") returns 5. Out of curiosity, I note that "<0" returns 0 and "=0" returns 5 and "><0" returns 0. For some reason, not equal to <> 0 seems to count those cells with 0 in them. Not sure what is going on here.

Short term solution: If you know that your values will always be greater than 0, drop the not equal to operator and use greater than.
Long term solution: Become more familiar with how Excel handles the <> operator in the countif() function to better understand why it is counting the zeroes.

Additional observation. In sheet2, I put =sheet1!C10 and copied down to C24 (deleted the "pass" from the merged C22 cell). In sheet2, =countif(C10:C24,"<>0") returns 5. The error in the countif() function seems to be limited to your sheet1. Still not sure why. Probably going to take a mind far superior to mine to understand this behavior.

Next observation: Your named range refers to rows 10:24, but only rows 10:19 are actually used. =countif(c10:c19,"<>0") returns 5, countif(c20:c24,"<>0") also returns 5. For some reason, the countif function is saying that blank/empty does not equal 0. Is there a reason to include rows 20 to 24, when the structure of the table obviously suggests that the table stops at row 19?