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Learn how to create a Smoke Effect in Photoshop CS with Filters and Tools such as Dodge Tool, Burn Tool, Wave Effect, Smudge Tool.
Step 1 :
Open a new file by clicking on File>Open.
Give a dark background color because you can not see
smoke in day light much. Here we gave Black color. Create
a new layer. Draw the image of the smoke with Polygonal Lasso
Tool. Give a lighter color gradient to
the new shape. Make sure it' s a Linear
gradient. Here we have given Purple
to White gradient.

Step 2 :
Select
DodgeTool and select Range as
Highlights, Brush as 18px, Exposure as
50%. Brush all the corners.

Step 3:
Go to Filter>Distort>Wave.

Select Number of generators
as 4, Wavelength min 10 max 250, Amplitude
min 15 max 35
Scale 100% for horizontal and vertical.
Click on Randomize as much as you think that the picture looks like a smoke. Click on OK.
Step 4: Go to Edit >Fade Wave. Select Opacity as 50%. Click on OK.
Step 5: Give Opacity as 50% in the layer style on right at the top.
Step 6: Go to
Smudge
Tool and make all the edges smooth by dragging
the hand in the picture.

Select Brush as 25,
Mode as Normal , Strength as 50%.
Congratulations! Your smoke effect is ready.
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