What term describes the method of showing two images where one fades out as the other fades in?

The method of showing two images where one fades out while the other fades in is known as cross dissolving. This technique is widely used in video editing to create a smooth transition between two scenes or clips, enhancing the visual flow and continuity of the narrative. Cross dissolving allows viewers to perceive a connection between the two images, as the overlapping of both creates a seamless blend. This is particularly effective in storytelling, as it can signify a passage of time or a change in location or perspective without abrupt interruptions.

In contrast, the other terms have different meanings in the context of video editing. Gradual transition might imply a smooth change, but it lacks the specific connotation of overlapping images that cross dissolving provides. Cutting refers to an abrupt transition from one scene to another without any fading, and layering typically involves combining multiple images or elements, which is not focused solely on the fading technique. Thus, cross dissolving is the precise term that describes the method in question.