Shadows, by Paragon Signals

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"Shadows" is a momentum indicator with a twist: Instead of reading raw price at face value, it focuses on moves that look more intentional, then measures momentum through a MACD-style lens. It includes filters to avoid getting baited by chop or dead market conditions, a directional state so it doesn’t flip on noise, and a quality score as a quick “is this clean or messy?” check.

Quick use:

a) Check the quality score first: high = cleaner context, low = noise.
b) Follow the directional bias: bullish → favor longs, bearish → favor shorts.
L / S= suggested entry when everything lines up. **XL / XS** = exit when momentum fades or bias flips.
* You can also use the **colored lines** as signals on their own ( blue-longs, red-shorts) —not just the entry/exit markers—since they help you read momentum and direction in real time.
Great for 15m TF (crypto perp)

About me: Quant trader with years in the game, building a new project and using Pine Script as a sandbox/proyect. I’m also a data scientist and Python developer, eat, sleep, and breathe markets is mandatory lol ( jk ). Outside trading, my second passion is football (watching it and playing it).
a = "peace out"
print(a)

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Informacje o Wersji

Fixed a minor bug,
Disclaimer: This indicator is for educational and informational purposes only. It is not financial advice, investment advice, or a recommendation to buy, sell, or trade any asset. Trading involves risk and you may lose part or all of your capital. You are solely responsible for your decisions.

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Informacje o Wersji

Added a new formula to improve sintaxis

1 godzinę temu

Informacje o Wersji

Shadows is a flow-weighted momentum oscillator. Instead of running MACD on price, it builds a signed activity factor from OHLCV (direction × relative volume), then applies a MACD regime detector on that factor to flag momentum inflections.

Signal construction (factor model)

Directional proxy: A discrete sign of the 1-bar return: up = +1, down = −1, flat = 0.
Activity normalization: Volume is normalized by an EMA baseline to form relative volume, then capped to control outliers.
Signed flow factor: direction × capped relative volume → a compact proxy for “net pressure.”
Noise control: the flow factor is EMA-smoothed to reduce microstructure noise.

Regime detection (MACD on factor, not price)

Compute fast and slow EMAs on the smoothed flow factor; their difference is the MACD(momentum of pressure).
A further EMA produces the signal line; the*histogram is the residual (acceleration/decay of pressure).

Event logic (trade markers)

Long bias event: MACD crossing above signal, optionally gated by a minimum |MACD| threshold (energy filter).
Short bias event: MACD crossing below signal, same gating.
Exit markers are the symmetric cross events. This version is intentionally stateless: it produces regime-change events, not a full position manager.

What it captures

A shift from price-based momentum to pressure-based momentum: the oscillator responds more to directional moves occurring on above-baseline volume, and less to low-participation drift.
This indicator is for educational/informational purposes only and is not financial advice or a recommendation to buy or sell. Signals are probabilistic and can be wrong; past performance doesn’t guarantee future results. Trading crypto/derivatives involves high risk and you may lose all capital. Use proper risk management and you’re responsible for any decisions or losses.