I would suggest you to check this online demo
which demonstrates basic drag and drop operations in TreeListView control. The same example is also available in your local copy of our WPF demos
As for your question about dropindicator
details - you can check how this is achieved for the TreeView control in this online example
. You can check how DragOver event is handled in the TreeViewDragDropBehaviour class. The same approach is applicable for TreeListView control as well.
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