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I have a layer with a blending option set to Color Burn and opacity under 91%. It's called Layer 7 is my screenshots.

If I download a jpeg of a solid color of red, and put it behind this layer, the Layer 7's texture is superimposed over it: texture

However, when I use a layer that has a color overlay applied, the texture from Layer 7 doesn't show through at all: no texture

Why is this and how do I get Layer 7's texture appearing over my color overlay?

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This is because the colour overlay's blending mode (or any layer effect's) is a standard Normal. It's rather counterintuitive, but that Normal does not obey the layer's owen blending mode. The overlay you see is therefore a regular red with blending mode Normal.

You can fix this by going into the layer effects dialog box and changing the effect's blending mode to Color Burn as well.

Another option is to check the Blend Interior Effects as Group box on the Blending Options: Custom page of the Layer Style dialog. That will make all the styles obey the layer's blending.

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