WELCOME TO

DREAM
TRADING CLUB

INDEX

1. What is the DTC Indicator ----------------------------------------------------1

2. How Does the DTC Indicator Work ----------------------------------------2
3. Entry Rules for the DTC Indicator-------------------------------------------3
4. Exit Rules for the DTC Indicator---------------------------------------------6
5. Target Rules for the DTC Indicator----------------------------------------7
6. Psychology Tips for Trading--------------------------------------------------8

What is the DTC Indicator?

DTC Indicator (Dream trading club ) is a powerful tool used in trading that combines moving
averages and volume analysis to provide strong support and resistance levels. It helps traders
identify high-probability trade opportunities and make informed decisions about entry, exit, stop-
loss, and profit targets. The DTC indicator works by showing colored lines on the chart — green lines
for bullish signals and red lines for bearish signals. These lines act as dynamic support and
resistance zones, helping traders take safe entries at the right time.

The indicator provides multiple confirmations for trades, ensuring that traders avoid risky entries
and wait for price to retest important levels before taking positions. By following the DTC indicator’s

1
rules, traders can minimize losses and improve their overall profitability. It simplifies decision-
making by visually indicating whether the market is likely to go up, down, or remain neutral.

In this strategy, we will learn how to use the DTC indicator step by step. We’ll cover the rules for
taking entries, exiting trades, placing stop-losses, and setting profit targets. Following these rules
will help traders take advantage of market trends while reducing risks.

How Does the DTC Indicator Work?

The DTC Indicator provides traders with clear visual signals in the form of three colors: Green, Red,
and Grey, which help determine the market’s direction and potential trade opportunities.

1 Green Color:

When the DTC indicator turns green, it indicates that upside volume is high, meaning there is strong
buying pressure in the market. This suggests that the market is likely to move upward from this
point. Therefore, traders should focus on buy-side opportunities during this period.

2 Red Color:

2
When the indicator shows red, it means that downside volume is high, indicating strong selling
pressure. The market is more likely to move downward from here. In this case, traders should look
for sell-side opportunities only.

3 Grey Color:

The grey color indicates that the market is currently neutral, with no clear trend direction. The
market could either go up or down from this point. When the DTC indicator turns grey, traders
should exit their existing trades and wait for a new trade opportunity with a clear signal before
entering the market again.

Entry Rules for the DTC Indicator

The DTC Indicator provides clear signals for both buy and sell trades, but it’s important to follow
certain entry rules to ensure safe and profitable trades.

Buy Signal Entry Rules:

3
When the DTC indicator gives a buy signal, the green lines act as strong support. However, traders
should not enter the trade immediately.

• Wait for the price to come near the green lines and take support.

• Once the price bounces from the green lines, that’s when you make your entry.

This ensures that your entry is at a safe level, minimizing risk.

Tip: If you miss the first entry, don’t worry! You can enter again whenever the price retests the green
lines. Multiple entries are possible during retests.

Sell Signal Entry Rules:

When the DTC indicator gives a sell signal, the red lines act as strong resistance. The rules are similar
to the buy signal:

• Wait for the price to retest the red lines.

• Enter the trade when the price bounces off the red lines.

4
This helps ensure that you are entering at a safe resistance level.

Important Rule:

You can make up to three entries on multiple retests of the support or resistance lines.

• Do not enter a fourth time.

After three retests, the support or resistance lines may weaken, and the trend can change. At this
point, the risk of your stop-loss being hit increases.

By following these entry rules, you can improve your trade accuracy and reduce the chances of
making risky trades.

Stop Loss Rules

Placing the right stop loss is essential to managing risk in trading. The DTC indicator provides a
structured way to set your stop loss and ensure your trade is protected.

Step 1: Setting the Initial Stop Loss

• You can set your stop loss based on your risk management strategy.

• If you want to use the DTC setup, place your stop loss at the previous swing point near your entry.

• For a buy trade, the stop loss should be placed below the previous swing low.

• For a sell trade, the stop loss should be placed above the previous swing high.

This helps protect your capital and keeps your stop loss at a logical level.

Step 2: Trailing the Stop Loss

• Once the trade starts moving in your favor, start trailing your stop loss to lock in profits.

5
• The trailing stop loss should be moved to the previous swing high or low as the price continues to
move in your direction.

For Buy Trades:

• Trail your stop loss to the previous swing low as the price moves upward.

For Sell Trades:

• Trail your stop loss to the previous swing high as the price moves downward.

Why Trailing Stop Loss is Important:

Trailing your stop loss ensures that you secure profits from the trade while reducing the risk of losing
capital. By following this rule, you can exit trades safely when the trend shows signs of reversal,
protecting your gains.

Exit Rules for the DTC Indicator

Exiting a trade at the right time is as important as entering at the right level. The DTC indicator
provides clear exit signals to help traders manage their positions effectively.

Exit Rule Based on DTC Indicator Color:

• If your stop loss is not hit and your target is also not hit, but the DTC indicator lines turn grey, it’s a
signal to exit your position immediately.

• Why? The grey color indicates market uncertainty. The trend can reverse or continue, but it’s
better to secure your profit or cut your losses rather than take unnecessary risks.

Why Exiting on Grey is Important:

• The grey color means the market has become neutral.

6
• Staying in a trade during neutral conditions can increase the risk of trend reversal and stop loss
hits.

• Exiting at this point helps you protect your capital and wait for a new trade opportunity with a
clear signal.

By following this exit rule, traders can reduce risk and ensure they don’t get caught in unexpected
market reversals.

Target Rules for the DTC Indicator

After making a successful entry and setting your stop loss, the next important step is deciding your
target level. Here’s how to manage your target based on your trading style.

For Scalpers:

If you are a scalper (short-term trader), you can set your target based on your risk-reward ratio.

• Example: If your risk is 1%, aim for a target of at least 1.5% to 2% profit.

This ensures that your reward outweighs your risk, even in quick trades.

For Swing or Positional Traders:

If you prefer to hold trades longer, your target should be the next key support or resistance level.

• For buy trades, the target is the next resistance level.

7
• For sell trades, the target is the next support level.

Important: Keep Your Trailing Stop Loss Active

While waiting for your target to hit, always keep your trailing stop loss in place.

• If the price moves in your favor, keep adjusting your stop loss to secure your profit.

• This way, even if the target isn’t hit, you’ll exit with a profit if the trend reverses.

Summary:

• Scalpers: Use a risk-reward ratio to set targets.

• Swing Traders: Aim for next support/resistance levels.

• Always use a trailing stop loss to lock in profits and reduce risk.

Psychology Tips for Trading

1 Discipline Over Emotions

• Always stick to your strategy. Don’t let greed, fear, or excitement drive your decisions.

• Follow your plan, even when it feels tempting to do otherwise.

2 Accept Losses as Part of Trading

• Losses are a part of trading.

• Learn from them, but don’t let them affect your confidence or future trades.

3 Patience is Key

• The market rewards patience, not impulsive decisions.

• Wait for the right opportunities and avoid overtrading.

4 Control Your Greed

8
• Don’t chase after unrealistic profits.

• Aim for consistent small wins instead of risking everything for big gains.

5 Stick to a Risk-Reward Ratio

• Always calculate your risk-reward ratio before entering a trade.

• Never risk more than you can afford to lose.

6 Avoid the Fear of Missing Out (FOMO)

• Don’t enter trades just because others are doing it.

• Stick to your analysis and strategy.

7 Manage Your Stress

• Trading is mentally exhausting.

• Take regular breaks and don’t let stress cloud your judgment.

8 Don’t Get Overconfident

• Even after a winning streak, stay grounded.

• Market conditions can change anytime.

9 Focus on Process, Not Profits

• Successful traders focus on following their system, not just profits.

• Profits are a byproduct of consistent, disciplined trading.

Learn and Adapt

• The market is always changing.

• Keep learning and improving your strategies based on new information.

9
10