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This following technique is called feather blending. It is very easy to do and done in Adobe Photoshop. Here are the pictures I will be using:
1. Begin by choosing two or more images you wish to blend together (save them). Open up one image in photoshop. Then click on Image>> Canvas Size and increase the canvas so that you will have room for the other pictures.
2. Next, go to File>> Open and open your second image. In the toolbar, select the rectangle maraquee tool:
3. From the top corner to the opposite bottom corner, press and drag your mouse over the entire picture and release. You should now have something like this with a floating box going around it.
4. Hit Ctrl + C on your keyboard (or Edit>> Copy). Exit your second image. Now in the first image you opened, hit Ctrl + V (or Edit>> Paste).
5. Your second picture will appear ontop of the first. They MUST be slightly overlapping!
6. Select the Lasso Tool Then change your settings to match mine:
7. Once you have that adjusted, you can start circling the area you want blended. Example here. When the floating line comes up, hit 'Delete' on your keyboard 2-7 times (depending on the effect you want).
8. Repeat Step 7 until you have achieved this blended look. Now you are ready to add text and brushes!
CHECK OUT MY END RESULT HERE!!! Hope this tutorial helped :)
Then change your settings to match mine: 