Adobe Photoshop Elements 10 Pen tool

Photoshop elements doesn't have a true Pen Tool or a Paths panel, so this is more akin to using the Freeform Pen Tool in photoshop.

After you draw out the path using the Text on Path tool, click on Modify and you'll see some points on your path

Now you can click and drag on any of the points to move the path

There are other things like pressing the Alt (option) key to delete points or the Shift key to add points.

You can draw straight lines by starting a path then pressing the Alt (option) key to draw straight lines, though it's a little tricky to get it to work.

Also if you click off the path and it disappears you have to go to Window>History and go back one step from Delete Path.

Honestly you'll never get the precise control you desire using photoshop elements, so i would suggest looking at Photoshop cc or Illustrator for actual Pen Tools and losts more control.

A "Pen" tool refers to a tool used to draw vector lines, and does not exist in PSE.

PSE does have the "Pencil" tool which will draw hard-edged bitmap lines.  It's part of the Brush tool icon set -- hold down your left mouse button to reveal the other tools:

Ken