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Ambient: Lighting that is all around us. The light source is not obvious from one source. i.e: recessed cans, wall sconces/washers, lamps with big lampshades. Use mainly in living rooms, kitchen and den. Use dimmers with this type of lighting as way of making the light source as discrete as possible.
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Accent: Highlights interesting objects like pictures, painting, and architectural elements. This will help add dimension to the room.
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Task: Lighting source should be hidden to the eye; it can make your eyes tired to look at the direct light source while working. Task lighting should illuminate the area where you will be working but the light source should not be harsh light directed to the eyes. Use mainly in kitchen, bathroom and den areas.
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Decorative: Lighting that makes a statement "Look at Me" decorative lighting should be used with other types of ambient lighting. This form of lighting plays an important role, it should unify and add focus to the room. Often this type of lighting should be used with a dimmer to adjust the lighting so it does not cast unflattering shadows.
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Kinetic: Moving light, like candles or lighting from a fire, neon lights for signage, even a TV or computer screen.