Painting and drawing with the Art Media tools : Using the Colored Pencil tool
 
Using the Colored Pencil tool
The Colored Pencil tool lets you apply dry pencil strokes that blend when you apply light pressure, and overlay when you apply firm pressure. The Colored Pencil tool does not apply bump to a surface, and it will only smear when you apply pressure to the canvas. You can use the Smear tool to blend colored pencil strokes.
Colored Pencil tool options
Edit workspace 
Colored Pencil tool options include
Shape — defines the shape of the pencil tip
Size — defines the size of the tool head in pixels
Thickness — defines the aspect ratio of the tool head
Rotation — defines the angle of head rotation in degrees
Head Tracking — controls whether the tool head bends around the path of the user’s stroke, or remains at a fixed angle
Style — determines the behavior of the Colored Pencil tool tip when using a stylus
Choose Tilt to change the style through a linear progression based upon the stylus tilt. Choose Tip to mimic using the very tip of a pencil. Choose Edge to mimic using the pencil’s edge.
Softness — defines the softness of the pencil lead, controlling how easily pressure or velocity break up the lead and cause it to powder into the canvas dents, or to smudge when applied
Trace check box — allows the Colored Pencil tool to select the pigment color by sampling the data below the center of the tool
Important! When you hold down the mouse button to begin the stroke, note that a single sample is performed and the resulting color is used for the duration of the stroke.