Time Compression Trading: Exploiting Multiple Time Frames in Zero Sum Markets (Wiley Trading) [Hardcover]

Not a bad book. I already exploit traders in different timeframes and look for congruence which gives rise to time compression and huge orderflow. This book is the first book to exclusively focus on time compression congruence, and so gets a decent rating for breaking new publishing ground. The book certainly helped me tweak some of my thinking.

Any book which gives me a single workable idea is worth it, in my view. This book gave me a couple.

As a professional of over 10 years trading experience in Futures, I broadly endorse the core message of this book.

I think i can articulate (where jankovsky doesn't) to "noob", that the reason that the indicator based technical analysis is invalid on the lower timeframes, but not on the higher timeframes, is that when correctly tested for, in the vast majority of(though i don't say ALL)cases such indicator based signals have no demonstrable positive edge, no-matter how you combine them on lower timeframes, particularly intraday. Many profitable traders get buy with them on their screens, but i would suggest that their edge is usually down to a combination of other factors like good stock screening, standard cutloss/runwin techniques or an experienced eye for unusual or rapidly developing stand-out behaviour in some form of price action.

However, the chances of any given indicator having a positive edge DO demonstrably rise in the higher time frames, though typically only when employed in a trendfollowing manner. i.e. forget "Overbought and Oversold" rubbish.
Thus the only true measure of exhaustion that i have come across over the years that is worthwhile is that of sudden price spike followed by immediate volume drop in activity, and Jankovsky delves into and explains this nicely. I haven't given much thought to fulltime use of this type of pattern until reading this book, as typically my style is to enter on continuations of a young trend and not to anticipate tops/bottoms.But like another reviewer says, any book that can open, or re-open your eyes to something that is actually useful, is worth it.

I would encourage people to purchase and read the book for the rest of it's less tangible philosophy also. It is the true way one should be thinking of markets, "people, not prices" as jankovsky states. He might not be absolutely right on everything, and is a touch over-assertive on things for which he offers no thorough proof. But as with many "the-game-within-the-game" intuitive concepts, 100% irrefutable proof of these concepts is almost impossible. I think that his apparent conviction that volume is the last word in all analysis is somewhat flawed. IMHO prices can do many great movements with little or no volume whatsoever, as only perceptions need change, zero-sum markets or not, and it is still quite easy to misread some shadowy powerful market actors waiting in the wings, until they blindside you, no matter how good your "time compression" confluence looks. He is right though in the view that zero-sum markets do apply particular pain to those caught out, and this is where the confluence of volume and action blowout come together as he outlines nicely. YMMV!

This is the first book I've read that approaches the market from both a practitioner's POV (i.e. non-academic) and an order flow mindset. I very much enjoyed the first two sections, where he talked about the losers in a zero sum game, the fallacy of technical analysis, and more. I already viewed the markets from this perspective, but it was nice to hear someone else talk about my favourite subject, and he also expounded on a few areas I hadn't given much thought to, so overall it was an excellent read.

The other/last two sections, on the other hand, were sort of based on some premises which I didn't agree with. For example, that the lower timeframe trader is the loser and the higher timeframe trader the winner. Also that the lower timeframe trader trades using the same concepts as the higher timeframe traders, such as trends. Now I suppose it is entirely likely that the majority of losers on lower timeframes are in fact using technical analysis and entering at the wrong places. However they would not automatically become winning traders using the same analysis on the higher timeframes. Jason does indeed mention this, that they not only need to move to the more "dominant" (higher) timeframe, but also change their approach. Why then does he use "incorrect" methods of analysis on the lower timeframe examples and "correct" analysis on the higher ones? You cannot compare the two like that. If the method is at fault, then the same method should be used on the lower and higher TFs to show that the method doesn't work. If the use of lower TFs is at fault, and the method isn't, then show that the method works on the higher TFs and not on the lower ones.

I know his point was that both the technical analysis method and the lower timeframes were incorrect, causing losses. But the point is ineffectually made by using a different method of analysis on the higher timeframe. He doesn't show us what happens when using the "correct" method on the lower timeframe. If it worked, then why constantly point to lower timeframe traders as the losers, when it's the method at fault? If it didn't work, then for the sake of consistency and clarity, use the same method on both timeframes.

To conclude this lengthy point, it is my opinion that order flow on the lower timeframes is best viewed differently from typical longer-term analysis (i.e. trend trading). A lower timeframe shows in more detail exactly how the order flow is affecting the market in the short term, where imbalances are building, what the short term market is "thinking" or what its intentions are. This is best traded in a different way from the typical technical analysis Jankovsky uses on his lower timeframe examples.
However, I must also say that whilst this issue was a pet peeve of mine, the second two parts are overall quite good and will probably help most people (they've given me some stuff to think about as well). I'm not saying its conclusions are wrong at all, I just took exception to his blanket statement of "this is how lower timeframe traders trade, and lower timeframe traders are losers".

All in all though, I heartily recommend this book to anyone wondering why their technical analysis isn't working as the many books say it should, or anyone with an interest in order flow. I should also note that this isn't about order flow as in "time and sales, L2, etc.", this is about viewing the market from an order flow mindset. I will also recommend another two books to go along with this:
1. Trading and Exchanges by Larry Harris.
T&E is a dry but excellent book which will give you a solid factual grounding in how exactly markets work, how and why prices move, who trades and why, etc. In my opinion this is the most important book on the markets a retail trader can own, and if you are not familiar with its contents, you will likely have an understanding of the markets which is not based on reality but on fantasy which you picked up from other books, trading forums, the many charlatans in the education business, your own baseless, faulty logic. How can you expect to profit if your premises are flawed? I would recommend you read T&E before this or any other book. You'll be amazed how much other information floating about you'll be able to dismiss out of hand after reading this book, simply because you'll be able to spot a system or premise that is not grounded in reality from a mile away.
2. The Art of the Trade
This isn't a "must read", but it helps understand where the author's coming from, and also what precisely he means by "conflict" which is a work he uses often in this book. An easy, enjoyable read.