Use Freehand Appliqué Outline 
to draw a line of any shape to create an appliqué outline.
Select a Color Command or Stop Command to start the appliqué piece from, then draw the outline. When hovering over a Color Command you will see the stitching that follows it. Release the mouse button to complete the line. Right-click, and the Appliqué Selection dialog box opens. Select a fabric, then click OK to place the Appliqué Piece.
Hold down Ctrl to place a corner point when creating or editing a line. Click Delete
on the Home tab to remove the last-placed point.
Shortcuts
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Create, Appliqué Tab:
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Keys: Alt, A, AO, FT