Step 1: Creating a new appropriate background, filling it with black and importing graphics or text.
Step 2: outer glow
Step 3: Using color overlay is for the better adjustment of color at the later stage.
Step 4: Using inner glow can make some transparent effect.
Step 6: Using mask to fade the above.
Step 7: Using the liquefied forward warp tool and adjusting the brush to the right size and begin to warp some of the major parts. (Do be slow, or the picture will be easily vague.)
Step 8: Opening the appropriate flame image, entering the channel box and choosing the red layer. Using CTRL + left mouse button to click on the red layer and load into the highlights. Back to the layers, using the move tool to move the selected area into the text file and make the flame above the text layer.(note: we use channels here to load into the selected areas. Please ensure that all channels are visible during the moving, or what you moved will be black and white)
Step 9: Importing the flame material and choosing the Screen mode to put the right flame in the right position and curtain off the redundant part with mask. (Be patient and overlying the right flame little by little, and then the effect is out. This is the key step.)
Step 10: Creating a new layer above the background layer and draw an oval selection in the center. According to the pixel of your canvas to feather and fill colors. (This step is to make the whole picture more harmony and also can highlight the theme.)
The final step: The overall adjustment of colors, adjustment of details, and some parts can be sharpened to show the picture appears to be layered. (In fact, I am not careful enough.)
Note: Material is available to be downloaded.
Anyone is welcomed to redistribute and quote the content only if he or she notes its origin. http://4-designer.com/2013/01/simple-and-useful-flame-effect-original-tutorial/