Photoshop Layer Styles Tutorial
This tutorial will give you an introduction to the layer styles feature of Photoshop as well as creating custom patterns and making selections. Layer styles can be used for many uses, but this tutoiral will be focusing on how layer styles can be used with type. It will take between 10-30 minutes depending on experience.
Files
1. Start of by downloading the Layer_Styles_Start.psd and opening it in Photoshop. Alternatively, you can create you own text if you like. I chose Myriad Pro (Semibold Condensed) at 150pt, I also turned on all caps.

2. Go to Color Overlay, which is located under the “Add new layer style” button. Choose a color and press OK. We won’t be using the color overlay, but it’s good to know about and is generally easier to manage color overlay. Also, you can copy and paste layer styles by right clicking on a layer.

3. Create a new layer and fill it with gray. I used #7C7C7C. This is the background so move it under your text layer.

4. Add a new layer style and choose Gradient Overlay. You’ll notice that nothing is happening. This is because the Color Overlay is on, turn it off (uncheck it) and then you’ll see the Gradient Overlay. Double click the gradient to bring up the Gradient Editor. Choose two colors, I choose yellow and orange for mine.

5. Next we’ll add a Drop Shadow. To turn it on check off the box and then match my settings. Generally, many of the effects like the glows and shadows are too harsh by default and will look rather amateur if you don’t turn down the opacity and size a little.

6. Next we’ll add an Inner Glow.

7. And a stroke.

7. Create a new document with a width and height of 3px. The background should be transparent and resolution 72.

8. Use the pencil tool to create 3 pixels going across at a 45 degrees angle. Refer to pattern.psd if needed.

8. Go to Edit > Define Pattern. Give the pattern a name and click OK.

9. Go back to your document with the text and create a new layer and move it above your text layer. Then choose the Pattern Stamp. Photoshop may show the clone stamp which is the default tool, so you may need to click the clone stamp and select the pattern stamp. At the top you’ll see Pattern: choose the new pattern we defined which will be at the bottom of the list.

10. On your new layer with the pattern stamp selected draw over your text. No need to be neat, but make sure to cover all the text with the pattern.

11. Control click the thumbnail of your text layer in the layers palette to load the selection or go to Select > Load Selection with your text layer selected. Right click on the selection and go to Select Inverse. Then press delete.

12. It looks, better, but I don’t like the way the pattern touches the edge so we’ll cut some more. With the text layer selected load the selection again. Then go to Select > Modify > Contract. Put in 2px and click OK, then Select Inverse and delete. You’ll notice we cut away 2px from the pattern so it isn’t touching the edge of the text anymore.

13. At this point your document should look similar to this.

14. Choose your layer with the pattern, then select the marquee tool and set the feather to 50px. Then drag a marquee around the top half of your text and press delete. You can press delete multiple times to slowly delete more of the pattern.

16. I decided to change the color of my Gradient Overlay. Double click the layer style in the layers palette to bring up the settings. I changed my orange color to a light yellow.

17. The final results…

Thanks for this great text tutorial. I am a new user of CS4 extended. Could you tell me is it possible in this programme to put a drop shadow on a separate layer from the image I am working on?
There is not a simple way, but you can try duplicating the layer and dedicating the top layer for the content and the bottom for the drop shadow. Alternately, if you wanted to rasterize the drop shadow you could delete the content of a layer and leave the drop shadow behind.