There are two modes. The first is multi-tap and the second is cycle. You can find more in the description for firmware 1.05: Blue Series Fan Switch Firmware Changelog | VZM35-SN - Switches / Firmware Discussion - Inovelli Community. The cycle mode off>low>medium>high>off. Kind of like if you were pulling the chain on the fan. I actually use the feature to control some Zigbee bulbs in the room and it works great there too. @bobzer the LED bar will temporarily show the level of the fan when using this feature.
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