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Image stabilization modes
An increasing number of consumer digital cameras now come with Optical Image Stabilization that assists preventing camera shake. There are three types of IS though most cameras with IS have two modes.
Continuous image stabilization
Continuous IS mode is always on. It keeps the image stable when viewing it on an electronic viewfinder or LCD. It's ability to reduce camera shake can be slightly less effective than using Shoot Only mode. But since Continuous IS stabilizes viewing, composing is often easier.
Continuous IS is very effective when shooting video, and is usually enabled by default when switching to movide mode. It is helpful when hand-holding a camera and framing long telephoto shots.
Continuous IS is also especially effective when using taking telephoto shots with a digital zoom where the slightest camera movement is magnified viewing a scene. Continuous IS works best in good light.
Shoot-only image stabilization
Shoot Only IS mode offers the greatest degree of stabilization. It is only activated at the moment the shutter-release button is pressed. Because it is enabled when the shutter button is pressed, Shoot Only mode generally produces sharper photos than Continuous mode.
Panning image stabilization
Moving a camera in the same direction as a moving subject is called panning. The technique produces images with the subject in sharp focus and the background blurred. Panning IS mode only makes adjustments for vertical movement and is activated when the camera shakes up and down.
Which image stabilization mode?
Digital cameras with image stabilization are usually set by the manufacturer to Continuous IS mode. Many users change the setting to Shoot Only mode. They only use another mode when it is better suited for one of the photo-taking situations mentioned above.
Image Stabilization should be turned off when using a tripod or other camera support.
Related reading: Misleading Image Stabiliztion terms

