Shadows, by Paragon Signals

אתמול

"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)

אתמול

הערות שחרור

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.

אתמול

הערות שחרור

Added a new formula to improve sintaxis

לפני שעה

הערות שחרור

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.