From the Heartland Hills dreamcatcher head southwest and then west across the railroad tracks. You will want to cut to the right off the trail before you get all the way down to the river's elevation. The dreamcatcher is located in the tree on the edge of the plateau above the river bank.
Finding all 20 dreamcatchers will reveal the location of the Ancient Arrowhead treasure; A unique item that makes Arthur's stamina last twice as long when using the bow.
View the Dreamcatchers Guide to start collecting them in the optimal route.