The halo effect is where you match your peep size to your sight distance where you see a halo (small opening or as little as none all around housing ring)around the round housing of your sight when at full draw. You center the housing in the peep then put the correct pin on the target while holding the housing centered in the peep. That is why the sight manufactors put the bright circle on your sight housings.
Correct. Most leave a little space creating the "halo". leaving the little space and the halo tends to be better due to your brain's natural way of centering an object, easier to do when you can see the edges as opposed to just black all the way around.
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