Now with the New Update for Pokemon Go with got a couple of handy fixes such re-customizing your character, changed a couple of spawn areas, pokemon Move set and Removed the nearby 3 steps. read below for details. Pokemon Go New Update Kills Nearby Feature
1) You can no longer select specific Pokémon on the nearby screen and track their footsteps that way. This also kills the “compass” tracking method that was never entirely confirmed to be true, but required this feature to work.
2) The order of the Pokémon on the grid in the nearby layout no longer seems to matter. I have seen Pokémon in the “last slot” appearing right next to me, as well as in any spot in the 3×3 grid. Simply put, you can’t seem to use my old tracking method of moving around to try and slide them up and to left so you know you’re getting “closer.”
3) The scan radius seems to have been decreased, possibly from 100 meters to 70 meters, meaning that you will have to get closer to a Pokémon in order for it to actually pop up next to you. Not a great development when paired with a total lack of tracking.
4) The effect on third party sites like PokeVision is still being sorted out right now. Rumor has it that this update did a number of things to try and prevent these third party sites (which Niantic is known to dislike) from collecting accurate data, but we’ll have to see if it’s just a hiccup, or if it kills them outright. (Update: For now, it seems many of these sites, including PokeVision, are indeed dead, making even unsanctioned tracking now nearly impossible as well)
5) While your scan distance has been decreased, apparently the range at which you can still catch Pokémon once they’ve spawned has been increased dramatically, perhaps up to 300 meters. This seems useful for…driving? I’m not really sure.
With this new update I’m unaware of Niantic’s approach as they have removed an important feature of the game which allow us to find pokemon. Pokemon Go New Update Kills Nearby Feature