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Target separation is a flashers ability to separate one target from another(think of it as one fish from another or one fish from the bottom).Target ID is the minimum size of target(fish) it can pick up.Some of those numbers always got me though, because I could use a 2mm jig which is really small - yet I could pick it up on my flasher.
The flashers are actually picking up the fish's air bladder, not the whole outside of the fish.The density of a fish's flesh is quite close to that of water and there is little reflection from the fish's outer body . The air contained in the swim bladder presents a major change in the acoustic path, which gives rise to useable amounts of reflected energy that the transducer can pick up.
metal reflects acoustic signals well. Did you see that new jig the came out this year that has a concave back on it? That one will really send back a strong signal.