Mike,
Good question.
For myself the use of a indicator as such, other than say a dry fly was something that l was not used at that time back in the UK, this for sure is more of a new way if you like of US origin.
I still will tell you that if you learn not to use a indicator as such you will develope fly fishing skills that you other wise would not, for many reasons, your whole set up for drift has to be changed in many ways as a indicator does act as a means to suspend, even though other influencial factors such as surface drift speed, length of leader/tippet to fly, weight of fly or added are all part of the game.
My answer to your question is yarn. I have used more or less any kind out there, some are a total waste of time so far as l am concerned.
And as you know l guide something like 200 days here on the river and watch how clients them selves see things.
These are the main reasons why l choose to use yarn.
Yarn can be trimmed down to minimal amounts, that is a way to be able to detect very small takes, big bulky indicators will not allow that degree of sensitivity.
And l mean very small, as small as a size 22 hook.
I can also adjust the way that indicator is visible.
For example, l can use say a longer length of a small amount, that will sit upright. This way you an detect shudder takes and you can also see the relative angle of that indicator, it will change if a fish takes the fly.
Then l can say for fast heavy water and when using larger flies or more weight increase the bulk of the yarn.
In other words, the option of choice are wide open. The trick is simple to have the indicator set up in the right way for the fishing you are doing at the time.
Yarn, because it is above the water surface can be seen at great range in any condition of surface movement, by that l mean fast riffle water, water that has due to wind big ups and downs.
Yarn is way easy to attach to very fine tippet, 6/7/8x if need be, and if you use the right connection will not move.
It lands on the water surface softly, and way lessens spooking fish, many indicators make a audible noise.
I personally do not use hi vis yarn, l prefer more natural shades such as olive, tan, brown, cream, white etc.
For certain HI vis indicators can cause fish to rise and take them, they then do not see your fly. Also they can become wary at the sight of hi vis indicators.
There are other reasons why l choose also to use them.
To be honest here on the White we have to use a single fly in the trophy zones, it is a nonesense rule so far as l am concerned, but l will abide by it. Out of those zones l will use a two or 3 fly rig for dead drift, sometimes, l dry and at times l have used two, with a nymph below.
As a rule for the fast or deep water l will use a large dry/nymph combination, can be deadly.
The best yarn out there in my book is this .
Comes from Jim at Fly South in Nashville, they have a great range of natural shades, and also hi vis for you guys that need that.
Hope this helps Mike.
Check the other site for the article on Indicator fishing !!
Davy