The Magic Wand is a tool used to create outlines from bitmap images. There are two styles – a wand for filled areas, and a wand for lines. The Line Wand tool is available in Level 3.
When you turn on the Magic Wand, you can click on the backdrop image and the Wand will look at the color where you clicked, find all pixels (dots) around it with a similar color, and then make an outline out of all of those similarly-colored pixels. The shape that a Magic Wand creates will not be as clean as one drawn by hand, but they are fully editable, and can be an effective way to get started on some simple projects.
Note: When you like the wand result, right-click to end the wand to keep what you’ve made. If you click the Wand button again, or hit the ‘Esc’ key, you cancel the operation.