http://www.orchidspecies.com/orphotd...yghillanyi.jpg
I like pictures of the plant in it's natural habitat. They tell a lot about growing possibilities. As the plant in the picture I own a Encyclia ghilanyi which is a very close relative of Enc. dichroma. I don't own it for a long time but it seems happy lots of new roots and 2 shoots.
A lot of light as you can see they grow on bare rock. This seems to be true for dichroma to as they share a lytophytic growth. But dichroma seems more variable in growing conditions. They should tolerate a wide range of temperatures cooling down during the night (in my case to 15 C).
But never I'd ever put sphagnum on an Encyclia or Cattleya they prefer their roots drying down. I grow most of mine on >90% bark / charcoal and <10% sphagnum / dicksonia. I water frequently and like my plants to dry between waterings. Also I use clay pots as they help avoid wet spots in the mixture.
However yours being a seedling I'd use a plastic pot with fine bark and 20-30% sphagnum.
Just how I'd do it