The merge paths functionality allows you to form more complex shapes by combining different shapes together. It can be a bit tricky to get just right though. This tutorial walks you trough the process of combining shapes with merge paths.
Written version:
Begin by creating a shape layer. Add another shape into the same shape layer and drag it below the first shape in the timeline. Click on the part that says contents to select it. Open the small add menu and select merge paths. Change the mode to suit your situation. We want to subtract the triangle from the circle in this case.
The two shapes are now united into one shape, which you can verify by giving it a stroke.
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