Pencil Tool

Pencil is a freehand painting tool.
Unlike Brush, it can't have soft edges.
  • In the Toolbox, select the Pencil Tool.
  • Choose brush size and style.
  • Select color.
  • Paint.
  • on the Options bar, you can also define blending mode (on animation I choose Hue) and Opacity.
  • Auto Erase option allows you to use the Pencil like Eraser Tool:
    • Select "Auto Erase"
    • When your stroke starts on area with foreground color (in the movie - cyan), the tool erases.
    • When your stroke starts on area with any other color the tool draws.

Tip. Just in case you didn't know, the Pencil tool is also available in Photoshop Elements that is way cheaper version. And if you believe, Photoshop Elements lacks some other important feature, be sure to visit this page.