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In this video, Mahalo expert Justin Z. briefly describes how the Custom Shape Tool works in Photoshop.

About the Custom Shape Tool
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The Custom Shape Tool is a path tool that allows you to create a custom shape based on a series of presets. The tool is best used for creating masks but can be used for graphic design with regard to creating shapes. This particular tool seems a bit less practical but can serve a variety of purposes.

Using the Custom Shape Tool
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1. Click and hold not he "solid rectangle" button near the bottom of the tool bar and drag down to Custom Shape Tool in the drop down menu.2. Click and drag across the image to make a selection.3. The Options panel above your canvas has a few sections, starting with the first section on the left.
* Shape Layers allows you to automatically create shapes in your image that will be separate layers.
* Paths allows you to create selections that can be made into masks for image manipulation.
* Fill In Pixels will simply create a shape that is filled with color and is uneditable. 

4. The second section allows you to quickly swap between the different path creation tools. This shows how the Pen and Shape tools are united as one main function. Using all three to their maximum potential allows you to create very precise and controllable masks making for very easy photo manipulation.
* One extra option you have with this particular shape tool is the ability to change what the shape is. It comes loaded with a lot of presets, and you can also upload custom shapes.

5. The third section of the tool bar allows for different options regarding path and shape customization. You can add path areas and allow for combining paths, you can subtract from them, you can intersect paths and you can create paths that exclude other overlapping paths.The tool is initially very simple, but it grows in complication and power as you learn to use it. It's definitely a tool for the patient as you get to know it, but it will prove completely worth it once you see what it can do.

Read more by visiting our page at:
http://www.mahalo.com/learn-adobe-photoshop-custom-shape-tool/