You can create a new palette in your project by right-clicking on Palettes in the Project window and selecting New Palette…
Here you can select the number of gradients, the gradient size and number of columns for your palette. If you check Insert Standard Gradients, a default palette will be generated. If not, only one row of gray.
The Palette Editor
If you want to make changes to the palette, press Ctrl+P or select Palette – Edit Palette in the menu.
In edit mode the key colors are selected and you can edit them. Left-click a key color to select a new color. Using the right mouse button, you can select or pick up a key color or remove it (if it was already selected) and with the left mouse button you can put it back somewhere else. So you can easily copy key colors to make new gradients or move them.
The numbers at the bottom are the delta values. These indicate the change from one color to the next in the gradient. You can edit them normally or use the mouse scroll wheel (hovering over the numbers). Hovering over the key color, you can change red, green and blue simultaneously with the mouse scroll wheel. You can also edit the color itself: Ctrl+Scroll: red, Ctrl+Shift: green, Shift: blue, Alt: alpha. But you can also just use the color picker.
You can also edit properties of each color in the properties window at the right.
Using the palette
To use a color from the palette, just left-click on it. At the bottom you will get another gradient with the chosen color at the center, so you can select more colors around it (gradients are not limited to the size of the palette but continue on the left and right).
You can also make a selection in the palette and then you will get that area in the gradient below.
At the bottom right you see the selected color and at the bottom left is the transparent color. There is no eraser, if you want to erase pixels, select the transparent color and draw with that.
The background color
Normally the background color is transparent, but if you right-click on a color in the palette, that will set the background color. This way you can easily check what your graphics look like with different background colors. You can also use View, Background Color from the menu.
To set the background color back to transparent, right-click on the transparent color box at the bottom left of the palette editor.
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