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Enabling Modulated Shadows
To enable Modulated shadows in your UE4 project you will need to do the following.
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Make sure that you have a Directional Light placed in your level and that it's Mobility has been set to Stationary .
Modulated shadows will only work with Directional lights that have their Mobility set to Stationary.
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Select the Directional Light and in the Details panel under the Light section, click on the small white triangle to expand the Advanced options to expose the Modulated shadows options.
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Enable Modulated shadows by clicking on the box next to Cast Modulated Shadows .
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To change the color of the Modulated shadows click on the Modulated Shadow Color and then using the color picker select the color you want the Modulated Shadows to be.
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To see what the Modulated shadows will look like you will need to run the game using either the Mobile Previewer or by deploying the project to a mobile device. As you can see in this example, the color of the Modulated shadow as changed from the default gray color to red to show off the effect better.