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It's done essentially the same say as in Vegas -- or any editing program.
Just put one video source one Video 1 and the other, synchronized to it, on Video 2, directly above it.
Then you just just and remove from video 2 when you want Video 1's video to show and add a Fade In or Fade Out to create the fade back and forth. (These are available via right-click menus. Just right-click on the track you want to fade in or out.)
If you understand how to use keyframes, you can even just use Opacity to fade back and forth between tracks rather than cutting clips from Video 2. When Video 2 is set to Zero Opacity, Video 1 will display, and you can keyframe the Opacity in and out to fade between tracks.
And, if you overlap the Clips on various Video Tracks (essentially A-B Roll Editing), you can add some Transtions, like Cross-Dissolve to the Head/Tail of the Clips. At this point, it might be worthwhile learning about Handles. They are essentially the "overlap" in A-B Roll Editing, but might help understand what is needed. Knowing about them is essential to doing single Track editing. This ARTICLE goes into more detail.
Thanks to both of you. What you are describing is exactly what I am trying to do, but it is not working for me in Premiere.
My tracks are aligned and synchronized. I have used the Fade In and Fade Out to give me several control points (is this what is referred to as a keyframe in Premiere?) that I can use to adjust the opacity to fade from one track to another. So far, great. However, I am no longer able to use this method. When I right-click and select Fade In or Fade Out, nothing is happening any more. No new control point (keyframe?) is appearing on my selected track in the timeline. I am needing numerous fade in and fade out points, and I do not want to cut clips from the upper tracks (although, I suppose this would allow me to do the head/tail cross-dissolve mentioned by Bill).
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If the Fade-In/Fade-Out Presets are not working, I would instead remove those, and manually Keyframe the Opacity, which is basically what the Presets do - instead, you just manually add and adjust the Opacity with those Keyframes.
Ah! That's what I was needing. For anyone else trying to figure this out, to manually keyframe, all you have to do is go to the lefthand side of your track and click the diamond shape that is between the two arrows. This will add a keyframe to the selected point on your timeline. The opacity can then be adjusted by moving the keyframe point up and down (or by moving the keyframe itself forward or backward in the timeline). It's still simpler in other software, but this method is much simpler than using the right click menus to add Fade Ins and Fade Out (especially when they don't work).
Thanks to both of you!
Yep. That's keyframing.
Keyframing is one of the most powerful tools in Premiere Elements. You can use it to create fades of audio and video, to set your audio to specific levels at specific spots, to create pan & zooms over photos and to create custom and special effects.
You can learn the basics in my free article at Muvipix.com.
And, if you want to master it, I show you lots of cool techniques in my basic books.
And I show you how to create dozens of special effects in my Cool Tricks book:
It would appear you seem to be using the term FADE as though you really want a DISSOLVE.
Fades have a period of black between them. Dissolves have no black between them. Which one do you want?
If you are using 2 tracks for a DISSOLVE, you only need to fade in and out the top track to get a dissolve to and from the lower track, as long as the tracks overlap during the period of the 'fade'. (right click on top track and select fade in and fade out)
Please not this is not a true 'fade' even though you have used 'fade' to achieve this!
If you are using 2 tracks for a true FADE, you have to fade in and out both tracks. It is far quicker to have them on one track and insert a 'dip to black' transition on each cut point.
When you insert a 'fade' there is a keyframe point created exactly on the cut point that often cant be scene unless you drag the cut point back a bit and a keyframe when the video reaches maximum level.
You can slide both these point along the timeline to get the exact position and length of fade (or dissolve), No need to create another one.
I have observed that many people in this forum seem to be using the term FADE incorrectly.