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[Cinematic] Fade fitler with text and transparent background

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Fade filter with text and transparent background

Is it possible to use text created in photoshop as a fade filter BUT with the background transparent? I've read that even after deleting the background in photoshop, it still won't work unless you work with some kind of alpha channel. I followed a tutorial on The Helper but when doing the work in photoshop, nothing really happens. Does anyone know a simple way of doing this?

If you want to take a look at the tutorial, it's step III I'm stuck on.
http://world-editor-tutorials.thehelper.net/cat_usersubmit.php?view=51604
 
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