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ArcGIS can digitize or trace features without mouse or puck clicking by using stream mode digitizing. With this method, the mouse pointer is used to trace the desired feature. Minimum distances between vertices are set on the Editor Options dialog box.
Stream mode is often used while digitizing hardcopy maps on a digitizing board, but it can also be used for heads up digitizing or freehand sketching of features.
Stream Tolerance, or how far apart the vertices will be, and Group, or how many points will be removed from an Undo click, must be set before digitizing in stream mode.
The Map Units of a data frame are determined by the Coordinate System of the data frame. If the Coordinate System is Geographic the Map Units will be Decimal Degrees. The Stream tolerance needs to be set very small, 0.01 - 0.0001, depending on the map scale, in order for new vertices to be added when the mouse pointer is moved.