The Dominator SMC Base is a Smart Money Concept (SMC) indicator designed to analyze market structure and identify key trading signals. It detects market swings using classic fractal logic by evaluating swing strength bars on both sides, with a default setting optimized for clean swings across various timeframes. The indicator determines trend direction by comparing the last two highs and lows, classifying trends as bullish (higher highs and higher lows) or bearish (lower highs and lower lows).
It identifies Break of Structure (BOS) and Change of Character (CHoCH) events based on candle closes relative to previous swing highs and lows, signaling potential trend continuations or reversals. The indicator also detects liquidity sweeps, characterized by wicks extending beyond prior swing points but closing within the range, indicating possible fakeouts.
Typical usage involves looking for CHoCH combined with liquidity sweeps for early reversal setups, trading in the direction of BOS after pullbacks or sweeps, and avoiding trades against the established market structure. The indicator supports analysis across multiple markets including Forex, cryptocurrencies, stocks, indices, and commodities, and is applicable on various timeframes. It integrates concepts such as fair value gaps and momentum indicators like RSI to enhance market structure analysis.