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In this video tutorial, the focus is on paragraph rules and shading, specifically noting that these features apply only at the paragraph level and cannot be used for selected text within a paragraph. To create a highlight effect, the technique involves character-level modifications. The tutorial demonstrates how to highlight specific words, like "ham," "turkey," and "pastrami," by selecting them and using the character panel. The speaker emphasizes enabling the underline option, ensuring previews are turned on, and changing the underline color to magenta while adjusting the weight for visibility. This effectively creates a highlight effect underneath the selected text.