Bitfinex dominance relative to an index of the most relevant perpetual swaps.
It compares the price of the Bitfinex BTC/USD market to a volume weighted index of perps.
Positive values (green) means Bitfinex is trading at a premium, which is considered bullish. Negative values (red) means Bitfinex is trading at a discount, which is considered bearish.
Bitfinex has been considered an exchange of "smart money" for a while. They're remarkably good at being bullish / bearish at the right time. When it's trading at a premium compared to perps it's usually a pretty good buy signal.
The indicator is very accurate at turning green when a local bottom is forming. It's great for confluence and bias and it works on all time frames. From personal experience I can say the the 4H gives the best results.