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Description: In this tutorial, I'll show you how to create a realistic flame effect.
Start a new RGB document that has same height and width (this one started at 400 x 400 and was clipped later to 400W x 225H) filled with black background. - Use the type tool and create a new text in WHITE and position the text centered in the lower half of the document.
Now create a new empty layer by clicking on the create new layer icon.
Now Press CTRL+ALT+SHIFT+E, this will combine all layers to the new layer.

Now rotate the new layer 90CCW. (Edit->Transform->Rotate 90CCW)

Now apply the Wind Filter to this new layer (Filter->Styleize->Wind)
Method: Wind, Direction: From the Left.

Press CTRL+F 2 times to reapply the filter 2 more times.

Now rotate the image back to normal: Edit->Transform->Rotate 90CW

Now go to Filter->Blur->Gaussian Blur: enter 3 to 5 pixels (to taste)

Now go to Image->Adjust->Hue/Saturation
Check the "Colorize" Box. Set Hue to 40, Saturation to 100 and Lightness to 0

Now Duplicate this layer, to do this, right click on the layer and choose "Duplicate Layer"
You should now have this:

Now apply some Hue saturation to the new duplicated layer:
Image->Adjustments->Hue Saturation:
Set Hue: 360, Saturation: 100

Now set the duplicated layer's blending mode to: Color Dodge

Now go to Layer->Merge Down To merge the 2 layers together.

You now have this.

Now to create our flames, we go to the Smudge Tool.

Set Soft Brush size to between 20 and 40, and Brush Pressure to around 40 to 45.(play with these)

Now just click and drag from the white edge of the text to wiggle your way upward through the orange to create the flames.

You can change brush properties and get creative to make the flames the way you like.

Now move the original text layer to the top on the layers pallete, and change it's color to black.

Now go to Layer->Type->Render to rasterize the text layer. Now use the Eraser tool and select the 65px SOFT brush at 50% opacity, and erase out the top half of the text.

Now, if you want to create a reflection, do a selection about half of the bottom part of the flame.

Paste this as a new layer.

Now go to Edit->Transform->Flip Vertical, Then use the move tool to move the layer down just below the text. Set this layer's opacity to 20%. You can use the eraser tool with 200px soft brush to erase out the bottom part of the reflection.

HERE IS THE FINAL RESULT.

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