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The shape selection tool is grouped with the shapes in
the toolbar. To find it, click on the shape icon which is
showing and select it from the pop-up list. Or, you can
select any of the other shape tools and then choose the
shape selection tool from the options bar.
Shapes are created by combining a color fill layer with
a clipping path that defines the shape outline. Clipping
paths are vector outlines, and they must be edited differently
than bitmap, or raster image areas (which, with the exception
of the type tool, is what the rest of your Elements features
use).
To select shapes you must use the shape select tool. If
you have multiple shapes on the same layer and you want
to move only one of the shapes, you also need to use the
shape select tool, and not the move tool. You can, however, use the move tool
to move the entire layer, and all the shapes (in unison)
that are on it.
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When you click on a shape (an object) once it will show an iridescent
outline (left below). If you click on the same shape again, it
will show its edit points (right).

If you click on the big check mark at the end of the shape selection
tool’s options bar, the shape will be deselected and the outline
will be gone.
If the Show Bounding Box checkbox is selected, and you
click twice on a shape with the black arrow tool, the shape will
be surrounded by a box with handles that looks like this (below).
Note that this screen shot shows a rounded rectangle on a white
background. The white was not part of the shape.
Any of the square handles you see can be dragged to resize, skew,
rotate or sheer the layer contents. The minute you drag on one
of them, the shape selection tool options bar changes to the transform
options bar, shown in the white section second below. Select
one of the dots in the multi dotted square at the left end of
this options bar to set the origin around which the transformation
will occur.
From left to right, the items on the transform options bar are
the tool icon, the transform origin selection dots, and three
text boxes. The first two text boxes are for setting width, and
height. Check or uncheck the little chain link between the height
and width boxes to constrain proportions or not. The third text
box is for entering an angle (for counter clockwise angles use
a minus sign) followed by three little faint icons that you’ll
probably miss since they’re practically invisible. Click on one
of those little icons to limit the transformation to, from left
to right, rotation, scale or skew.
You can enter values in any of the text boxes to transform by
numbers, or simply drag on the handles of the bounding box. Press
the Ctrl key as you drag a corner to distort (move only one corner
at once). Before and during transformations, your cursor will
change to indicate which type of motion will happen depending
on which handle you drag. In the black box illustration above,
the rotation cursor is shown. If you don’t like your transformation,
click the cancel button at the end of the options bar. You will
be returned to the move tool position where you started with no
transformation applied.
If you click twice on a shape with the black arrow tool, you
not only can get the bounding box, you can use the little boxy
icons to determine how the shape reacts to the rest of the layer
or any other objects on that layer. For example, clicking the
subtract button when a shape is alone on its own layer will cause
its coloring to be applied to all of the area outside of the shape
while the shape itself is transparent.
The interaction options are (as shown above) 1) New Shape (no
interaction), 2) Add to Shape, 3) Subtract from Shape, 4) Intersect
Shape (only overlapping areas will remain), and 5) Exclude Overlapping
(overlaps will be deleted leaving the nonintersecting areas intact).
If you have two shapes on the same layer, you can use the Combine
button to turn them into one shape. The shapes have to be selected
(clicked once with the shape selection tool) in order for the
Combine button to be available.
If you have doodled with a tool’s options and want to get back
to the default settings, click that tool’s icon at the far left
end of its options bar. Choose either Reset Tool to reset only
the current tool, or Reset All Tools to restore default settings
to every tool.
Please note that all descriptions, and illustrations featured
refer to files which are in Photoshop’s .psd format, and which
are in RGB color mode. Other file formats, and color modes may
generate different options. Some Photoshop features are not available
for images not in .psd format, or RGB color mode. To find what
color mode your image is in, choose Image > Mode.