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I couldn't really understand how the radar works, with the suns, as I thought It would signal where the Items are but then went Just exploring without It.

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So the way it works is sort of like a minimap, only it will display the icon regardless if it is above or below you. When an icon is near the top tip point of the black arrow, that means it is in front of you. If you don't see anything in that case, it is below or above you. I'm not sure how to make above/below indicators, but I will look into it.