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Photoshop Tutorial: Magic Hat Light Effect (detailed version) - page 2 of 4
Step 7: Click on Filter > Distort > Wave and enter the settings below. (Click OK to pop up box that says “This type layer must be rasterized…”.)
Step 8: Press Ctrl+T (Windows) or Cmd-T (Mac) and rotate the wavy text about 90 degrees counter clock-wise (double-click on selection when done rotation) and place it over the hat.
Step 9: Create a second line of text using steps #6 to #8 but name this layer “text 2”. Note: to avoid an identical wave which would make this look too symmetrical, in step 7 make slight adjusts to the settings in the Wave filter dialogue box, such as increasing the wavelength “min.” You may not get perfect results the first time so just undo a few steps by pressing Alt+Ctrl+Z (Windows) or Cmd-Opt-Z (Mac), and under the Wave filter dialog box keep trying slightly different values for wavelength, etc. (This is a really good way to learn how to use the Wave filter.) Also try moving the second wavy line of text down and erase the bottom part that overlaps the hat.
Step 10: Next we will add a glow effect to the text. Select layer “text 1”. As in Step 3, click on the “Add a layer style” icon and select “Outer Glow” and type in the settings below. (Click on the colour square to change the colour values/hex code #). Click OK when done. For the second line of text, use slightly different values for “Spread”, “Value”, and “Range” as shown below.
For the 1st set of text, I used the settings below:
For the 2nd set of text, I used the settings below:
Step 11: Next we will fade the tails of the text but we need to create two groups that each contain the two layers of text. Select both layers “text 1” and “text 2” and drag them into the folder icon at the bottom of the layers palette to “Create a new group”. You should now have a folder called “Group 1”. We need a duplicate of this folder so click on the folder “Group 1” and drag it into the icon at the bottom into the “Create a new layer” icon (to the right of the folder icon). Name this folder “Group 2”.
Step 12: With “Group 2” folder selected, create a layer mask thumbnail by clicking on the icon at the bottom of the layer’s palette “Add a vector mask”. With the layer mask thumbnail selected (just click on it), select the Gradient Tool  , and with the gradient set to “black, white”, create a gradient starting from the top of the page to about two thirds of the way down the wavy text. (If you turn off “Group 1” layer visibility, you’ll be able to see the results of the faded top of “Group 2”.)
Step 13: Next we need to give the text more dimension and add a smoky look. Turn off the visibility of “Group 2” for now, and click on the arrow to the left of the folder “Group 1” to open up the folder. In “Group 1”, turn off each of the 2 layers effects by clicking on the drop down arrow to the right and then click off the eye icon to the left of “Effects”.
Select both these layers, right click, and select “merge layers”. Name this layer “text blur”. Go to Filter > Blur > Gaussian Blur and change “radius” to 2.0 pixels. Click OK.
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