At this point Capo doesn’t support overlapping Regions or the ability to merge Regions.
This is a feature that the Developer of Capo would like to add at some point.
Please let us know how overlapping or merging Regions would be useful to you.
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Yes, this is something I have been looking for. When learning a song I break it down using regions so I can loop and keep playing that part until got it locked in. Then move on to the next one etc. Then I start deleting regions and and making the left over ones longer as I learn larger sections of songs. So for this use case ‘merge’ would be good.
Other use case is sometimes there is just a tricky phrase, lick, transition that I need to go back to and brush up on. This means hacking apart an existing region to make a new one - just for the small section I need. This is where overlapping region would be helpful.
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Yes this! This is crucial for being able to switch from whole phrases to individual sections of a phrase.
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Overlapping regions that can be named is the only thing that’s keeping me from using Capo over a competitor’s product. I will often create regions for the various parts of the song (verse, chorus, etc.), and then smaller regions for difficult passages that I need to work on. I’ll pay for this feature - name your price. 
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For what it’s worth, this is on my list of things to attack for a future update. But it’s a nasty hunk of work, thanks to decisions made by past Chris around a decade ago: What a goof that guy was! 
In case it helps, here’s my own process:
When I’m working on sections of a phrase, I tend to use the transcription cursor extensively to break things up when I’m trying to first wrap my fingers around something. (I have some more on that part of the process here.) I’ll toss a region around the chunk that I need to work on, and then work until I’ve got that part down.
At that point, I usually delete the region: I discard them because they’re so easy to create.
Only when I’ve got the sections worked out individually do I start making gradually larger and larger regions. Some exist only to tie together tricky parts of adjacent phrases that I have trouble moving between, so I can drill myself a bit more.
But I can totally see why you’d want to keep a few of these “drills” handy, which is why I’m keen to add this ability to save a set of regions that could overlap.
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Yes please add this feature, have requested it years ago.
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Hello, I use Capo all the time and always hit this request/need! How about something like the following as an idea?
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Thanks for this feedback James!
This is something that I’ve also been missing for a long time. I’d propose to split the screen vertically to three areas for the regions. This way the regions could also overlap. When learning something I often want to overlap a little bit with what I already have learned.
Here’s a very rudimentary sketch how it could look like:
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