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In this tutorial, Clay Preston teaches shading and highlighting in Word. He demonstrates how to select a color from the design options, opting for yellow. To apply shading, he shows how to use the bucket tool, which shades the entire line. For highlighting, he advises selecting individual words and using the paintbrush tool to highlight, choosing any color—again, he uses yellow. Highlighting only the selected text, unlike shading, which covers the full line. He concludes by inviting viewers to like and subscribe if they enjoyed the video.