how can i turn down a pictures opacity so that i can put it on top of another one to create an effect?
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Make sure it is the top clip in the stack. Move the pointer towards the top of the timeline and it will turn into a hand. Left-click and you can drag down the opacity. However this is not a standard envelope, and you cannot add points and vary the opacity up and down. If you want to do this you will have to split the clip and insert fade in and fade out effects as well.
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