About Type Modes in Photoshop Elements
You can enter text in Adobe Photoshop Elements in three different modes: point, paragraph, and path. Both the Type and Type Mask tools can enter either point or paragraph mode. Here’s a brief description of each mode:
Point: Use this mode if you want to enter only a few words. Select the Type tool, click in your image, and, well, type. The text appears while you type and continues to grow. In fact, it even continues past the boundary of your image!
Point type never wraps around to a new line. To wrap to the next line, you must press Enter (Return on a Mac).
Paragraph: Use this mode to enter longer chunks (or constrained blocks) of text on an image. Click and drag your type tool to create a text bounding box and then type. All the text is entered in this resizable bounding box. If a line of text is too long, Elements automatically wraps it around to the next line.
Path: Elements also offers the capability of placing text along a path via three unique type tools. Double-click the path and type; the text appears, adhering to the shape of the path.