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Noob question: if this is an automatic watch, what exactly does the power reserve dial show?
Amount of hours that the watch will keep on going without you wearing it
Probably 40+ hrs based on the power reserve showing 0 to 40 on the dial.
the approximate power left in hours.
An automatic watch still runs on stored energy , spring potential energy in this case, which is generated by the rotor which you can see through the exhibition caseback (if that's what you're confused about). That is what it shows.