This is what we are going to do today, this very simple tutorial will lead to an awesome effect!

Start off by creating a new canvas, 450*250 pixels. It doesn’t matter with what colour you fill it as we will overlay it with a gradient effect later.

Make a new layer, and fill it with a gradient overlay, to do so, just go to Layer >> Layer styles >> Gradient. Organize the colour buckets as shown on the picture below, here are the colours you would need, from left to right:
#020e60 … #fefefe … #020f5e… #020e60

Select the typing tool and type a word right over the whitish line. Don’t choose a slim font, we used “Spin Cycle” here, download it free at dafont.com

Go to Layer >> Layer styles >> Blending options, and apply these settings

Blending options:

Drop shadow:

Inner shadow:

Inner Glow:

Bevel and emboss:

Contour: http://www.loreleiweb.com/preview/newtutie/9.jpg

Be sure to copy all the settings correctly, else it won’t look the same, especially the gradient and bevel settings.

Texture:

Colours for inner gradient overlay, from left to right:
#000000 … #909090 … #fdf7f9 … #a7a7a7 … #787878 … #ffffff

Gradient Overlay:

Colours for gradient stroke, from left to right:
#535a60 … #fefefe … #303435

After having applied all these gradients, this is your result so far. If anything looks outrageously different, go back and see if you have applied all the settings correct and did not miss anything

Now, duplicate your text layer, and drag it down.
Set the Layer Opacity to 40%, or even a bit less.
Go to Edit >> Transform >> Flip vertical.

These operation resulted in this…

In order to turn in into a fading reflection, add a mask to the flipped layer and select the gradient tool.

Using the gradient tool (set to: from black to transparent), draw a line between the beginning of the duplicated text and to its end, even a but more, overlaying a few pixels of the first text layer (don’t worry, it will not effect it.) The lower part of the text should disappear and leave you with this nice reflection…

To give the text a real stylish disco effect like in the 80′s, select the brush tool, “Crosshatch4″ 40px wide (comes default in Photoshop CS2)

Make a new layer, with this nice glowing effect. Use #FFFFFF for the glow.

Chaotically add a several brush stamps, preferably on the places where the gradient or the stroke effect is white.

Tadaaaa… this is your result, enjoy!

download psd file