ANSWERS: 2
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They let you know if you have any activity in those areas. When they are orange, you do;)
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They are apparently supposed to resemble indicator lights. They light up when you have "new" activity on your profile and activity list, and go dark when you have looked at all the activity, or when you click on mark all as read. In my experience, they don't work properly, because sometimes they light up when nothing new is there, and sometimes they go off even when there are still "new" things on the list.
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