Apple Final Cut Pro 6 - Manual (Page 478)

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Three-Point Editing
When you’re adding content to a sequence with three-point
editing, you only need to set three edit points to tell
Final Cut Pro what content should go where in the Timeline.
This chapter covers the following:
 Understanding Three-Point Editing (p. 145)
 About Edit Types in the Edit Overlay (p. 148)
 Performing the Different Types of Edits (p. 149)
 Three-Point Editing Examples (p. 165)
Understanding Three-Point Editing
Unlike drag-to-Timeline editing, three-point editing allows you to use both source clip
and sequence In and Out points to specify the duration of a source clip and where it
should be placed in a sequence. In most cases, only three edit points are necessary, and
the fourth edit point is inferred automatically by Final Cut Pro.
Overview of the Three-Point Editing Process
To edit content into a sequence using three-point editing, you first set edit points in
your source clip and sequence, and then you perform the edit. Three-point editing gets
its name from the fact that Final Cut Pro needs no more than three In and Out points
(in the Viewer and in the Timeline or Canvas) to determine what part of the source clip
to place in a sequence. The result of the edit is dependent on which three points are
set in the clip and in the sequence.
Note: If you set fewer than three edit points, Final Cut Pro infers In or Out points using
the playhead in the sequence and the Media Start or End times in the source clip.