The DTC Indicator The Day Trading Channel Edition

Overview

The DTC Indicator is a precision-built engulfing confirmation system developed by The Day Trading Channel to simplify structured, session-based trading.
It identifies high-probability engulfing setups during user-defined sessions, automatically marks entry levels, and visualizes target/invalidation zones in real time.
The tool provides traders with a clean, rules-driven framework to analyze market structure objectively without relying on subjective interpretation or multi-indicator clutter.

The DTC Indicator is designed for day traders who value logic over luck — offering full control over session windows, confirmation filters, and risk parameters.

Core Concept

At its foundation, the DTC Indicator revolves around a straightforward yet powerful principle:

The first few candles of a session often define the directional intent of the market.

The script scans the initial candles of each active session for bullish or bearish engulfing structures — one of the most reliable candlestick confirmations in price action theory.
Once identified, it automatically logs the entry price, stop-loss, and take-profit levels based on the trader’s configured risk-to-reward ratio.



From there, the indicator takes over visual tracking — plotting live boxes for target and invalidation levels, marking outcome labels (TP/SL), and updating the internal statistics dashboard to keep a running log of all observed setups.



Key Features
🎯 Session Control & Customization

• Define up to four unique trading sessions (e.g., London, New York, Sydney, Asian).
• Each session is independently configurable, allowing traders to isolate setups only during high-activity periods.
• Visually differentiated sessions make it easy to monitor which time windows produce the best consistency.

🧩 Engulfing Confirmation Logic

• Detects bullish engulfing when a candle fully engulfs the body of the previous bearish candle.
• Detects bearish engulfing when a candle fully engulfs the body of the previous bullish candle.
• Signal confirmation is session-aware — only triggers within the specified start-window of each session.
• False positives are filtered out automatically if price fails to close beyond the engulfing range.

📊 Dynamic Entry Snapshot System

• Every valid setup is recorded as a “snapshot,” capturing the entry price, target, and invalidation levels.
• Boxes are drawn live on the chart, extending until price hits either the target or invalidation.
• Once resolved, the outcome is logged into the performance dashboard automatically.

🧮 Performance Dashboard

• Displays key stats directly on-chart:

Total setups

true / false

true-rate percentage

Latest signal direction

Last target & invalidation values
• The dashboard automatically filters by date range, letting traders review historical session performance.



🔔 Smart Alerts

• Optional alerts trigger on confirmed setups.
• Each alert message includes symbol, timeframe, direction, target/invalidation values, and timestamp.
• Compatible with TradingView’s webhook system for automation or third-party integration.

🎨 Visual Customization

• Choose between Modern Blue, Classic Green-Red, and Gold Edition color themes.
• Adjustable label size, box opacity, line thickness, and text color.
• Option to toggle boxes, lines, or only retain labels for a minimal layout.

Why It’s Different

The DTC Indicator isn’t another candlestick detector — it’s a structured visual journal of real-time session behavior.
Instead of cluttering the screen with redundant signals, it focuses on clarity: showing you when a session produces genuine intent, and how price reacts to that intent across multiple timeframes.

Each setup becomes a mini “trade story” — logged, tracked, and concluded.
This gives traders powerful visual feedback on how specific sessions behave and how consistent a setup truly is over time.

Recommended Use Cases

• Intraday Forex and Gold (XAUUSD) trading
• Scalping and short-term swing trading on 1 hour charts
• Session-based backtesting for pattern validation
• Visual trade journaling and post-session analysis

Recommended Defaults:

Timeframe: 1-hour (h1)

Risk-Reward Ratio: 1 : 2.5

Primary Sessions: London, New York

Commission & Margin (recommended table display): 0.02% commission, 1:100 margin

Limitations & Transparency Notice

• The indicator tracks simulated outcomes only; it does not represent executed trades.
• Historical win-rates are observational, not predictive of future performance.
• Non-standard chart types (Heikin-Ashi, Renko, Range) are not supported for engulfing detection.
• All results are based on visual backtesting and should be interpreted as educational data.

Access & Licensing

This invite-only version of the DTC Indicator is maintained and distributed by The Day Trading Channel.
Access may be granted to selected traders, educational partners, or evaluation firms for research and testing purposes.
Unauthorized redistribution, decompilation, or commercial replication of the script is strictly prohibited.

Disclaimer

This indicator is provided for educational and analytical purposes only.
It does not constitute financial advice, investment recommendations, or trade execution signals.
Trading financial markets carries risk — users are solely responsible for their decisions and results.

© 2025 The Day Trading Channel. All Rights Reserved.