This tutorial will teach you to create amazing "magic" color effects using some simple methods. It will greatly beautify every fantasy-style work. Create a new file (
File>New) that must have
1280x1024 px and
72 dpi. Use immediately after that the
Paint Bucket Tool (G) to paint the made layer in black color.
Next we have to select the
Rounded Rectangle Tool (U) with a radius of
10 px and draw the basis reserved for many – colored lights that would compose our picture. The color in this case is black.
Apply the next parameters on the last made layer by making a mouse click on the processed layer in the layers’ panel:
Blending Options>Drop Shadow 
Blending Options>Inner Glow 
Use now the
Ellipse Tool (U) to represent the primary layer of the colored small lights.
Make three copies of the last represented layer and select
Free Transform option to place the copies exactly the way shown next image. We have to apply also the next parameters for each layer.
The parameters for the
Red light:
Blending Options>Outer Glow 
Blending Options>Gradient Overlay
Gradient’s parameters: 
The parameters of the
Orange light:
Blending Options>Outer Glow
Blending Options>Gradient Overlay 
Gradient’s parameters: 
