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One of the easiest and most common layer effects that you'll see is the technique used to create a transparent watermark, an ability to overlay your logo on top of an image, yet still see through to the image underneath your logo or watermark. In order to do that all we need to do is tap T to access the Type tool. We'll click anywhere in our image area and then you simply type whatever you want that watermark to say, whether it's your name or your copyright. In this case I'll use Option+G to add the Copyright symbol and then type in the year 2012 and Julieanne Kost.
So, with the type created I'll hold down the Cmd or the Ctrl key and scale this larger, I'll hold down the Shift key in order to constrain that proportion of the type. I just want to make sure that we can really see it here, so this might be a little larger than what you might do, but that's all right. I can use the Move tool by tapping the V key and we'll just reposition it. So, let's add our drop shadow by going to the fx icon and choosing Drop Shadow. I want this to be a relatively strong drop shadow, so I'm going to move the Opacity all the way up to 100%, click and drag in my image area to reposition the drop shadow, I just want to offset a little bit, maybe two pixels isn't enough, so maybe I'll increase that to 4.
The only problem is that we can't see through the type, but if we go to our Blending Options here, we can change in the Advanced Blending area the Fill Opacity and if I decrease the Fill Opacity down to 0, you'll notice now that I can see through the type, but I still have the Drop Shadow. Now changing it to zero might be too much, maybe I want to bring that up to 20%, so that we can still see the type. When I click OK, you'll notice now that I can reposition this anywhere in my image area and you can see through my watermark.
So it's a nice way to add your copyright to an image yet still enable the viewer to see the image behind it. Of course, you don't have to add the Drop Shadow, you could add a Bevel and Emboss or you could add an Outer Glow, whatever your preferenc is as far as your layer style. The one thing that you should know is that when I went into those Advanced Blending, when I double-click Drop Shadow here and I went into the Blending Options>Advanced Blending, this Fill Opacity slider is actually the same slider that's on your Layers panel.
So, if you ever forget and you leave this at a 100% or if you just want to refine it later, you can always use the Fill slider here to change how opaque or transparent your text is. Excellent! That's how you can create your own transparent watermark.
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