To add to John's response;yes,it will serve as a strike indicator; BUT, as he said, you have to concentrate on it.
I put a BRIGHT color in the first section of my leaders. Example, on an Olive leader, I add Chartreuse. It is the first 18" or what ever the first section is on the different length leaders. My most popular leaders I call Desert Camo, the other is Forest Camo which are shades of Browns or Olives with bright first sections. And of course with the off set pegs, the colors do blend nicely.
The contrast is a great indicator. I am a wet fly freak and this works killer for me.
Man I have missed alot while durring the weeks long absence from checking the board. I have made a 12 ft thread leader for a genteman to fish the South Fork of the Snake last summer. He said that it worked great except for when he was trying to make shorter casts, and it had tendency to ball up on him. I believe this has to do with the taper of the leader. My Tenkara line I made seems to lay out just fine, and would probably work just fine on my regular rod as well. As far as materials go I am on the fence. I have used either a straight mono or thread leader only thus far. The thread leaders offer a softer more gentle presentation of the fly and a more natural drift due to the lack of memory. I have sold some leaders with a fluorocarbon core and tip for fishing nymphs and streamers. They have all been satisfied with them and caught several hogs with them on the Reservation. I also have a customer who uses my thread leader for his fine dries and a mono core with thread and mono tip for his heavier dries and nymphs and streamers. He loves them as well. I like the thread leaders for their supple nature, and a bit of mono can be added to help stiffen them up. The thread absords the water and sinks very well. Kevlar does furl nicely Joni! I personally like the mono core to help give them a little more bite to them without losing its suppleness.