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This video teaches how to create different levels of lightness and darkness in images using a basic pencil. The concept of value, which refers to the lightness or darkness of an image, is explained. The instructor demonstrates shading techniques by creating four shapes, with each shape getting progressively darker. Varying pressure on the pencil is used to achieve different values, with the pencil held closer to the tip for darker shades and closer to the eraser for lighter shades. Additional layers of value can be added by going back over the shapes.