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I agree that from a realism perspecive ANY squad markings would be out of place. You'd probably only see company, battallion, or division markings anyways. At least, not any other markings that you could see from an arm's length away. Most IG armies on the table are no bigger than a company, so they probably wouldn't have any distinguishing markings anyways exept for that crazy fluff piece about every single squad having a 3 digit number assigned to it!
Now from a gaming perspective squad markings are a great tool for keeping your squads and platoons straight. I use markings on the shoulder pad of my cadian minis and that works great, so if you don't mind some extra work, I'd go with 3. I usually just split the shoulder pad in half. I leave one half the normal green color and paint the other half with the squad color. Each platoon has their marking angled differently than the other platoons. For example:
Black squad, first platoon has a shoulder pad with the top half painted the normal green (like the rest of their armor) and the bottom half of the pad painted black. Black squad, second platoon has a shoulder pad painted with the top left corner painted green and the bottom right corner painted black. Black squad, 3rd platoon has their pads painted green on the left and black on the right half.
You could use this method on lasguns, shirts, greaves, or whatever. Or, you could just go with the old standby and paint the bases different colors.
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