Step 1:

- Fill the Background with the color #044476, then go to Filter Texture Patchwork, make sure that the Square Size is 4, and the Relief is set to 8.

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- Go to Filter Render Lighting Effects, and fill in the values below:

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- Again, from the Filter menu, choose Brush Strokes Crosshatch, and type in the values 9 for Stroke Length, 6 for Sharpness, and 1 for Strength.

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Step 2:

Create your text using the color #00a2e5. Bolder fonts work better with this effect. Choose a really bold font. The one used here is Rockwell Extra Bold, and the size is 480px.

Create a duplicate of the text layer, and make the original invisible (remove the eye next to it).

Right click on the duplicate, and then click Rasterize Type.

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Step 3:

With the duplicated rasterized layer active (selected), set the Foreground color to #00a2e5 and the Background color to #b2ebfc.

Go to Filter Pixelate Pointillize, with a Cell Size value of 5.

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Step 4:

Double click on the same copy layer, and apply the following layer styles:

(You might need to adjust the values according to the font you are using, thinner fonts need lower values).

- An Inner Shadow, change the color to #254e57, the Distance to 0, and the Size to 49px.

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- Bevel and Emboss, change the Size to 32px, the Highlight Mode to Hard Mix using the color #7d93a0, and the Shadow Mode color to #164b7c.

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- For the Texture, use the Woven Pattern. This will create the texture that gives the woven-like appearance to the effect.

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Step 5:

- Right click on the original invisible text layer, and choose Create Work Path. This will create a path out of the text.
You should be able to see a grey line surrounding the text after you create the work path.

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Step 6:

- Now, we will modify the brush settings to create a border for our text. Open the brush palette (Window Brush), and from the Brush Tip Shape choose the Chalk 17 pixels brush, then change the Spacing to 50%.

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- Make sure the Foreground and Background colors are still the same as in Step 3, and check the Color Dynamics box, then set the Foreground/Background Jitter to 100%. This will make the colors of the brush range between the Foreground and Background colors, creating a nice effect.

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Step 7:

Create a new layer and call it "bottom", make sure that the Brush tool is still active, and that the Work Path is still available, then hit Enter.

(Alternatively, you can select the Pen Tool, then right click on the path Stroke Path, and choose Brush from the drop down menu, with the Simulate Pressure box unchecked.)

This will create a jagged line based on the path.

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- Double click on the "bottom" layer to apply the following styles:

- A Drop Shadow, leave the values as they are by default.

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- A Stroke. Change the Size to 1px, the Blend Mode to Multiply, and the color to #a2cae4.

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You should get a result similar to this:

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Step 8:

Don't get rid of the Work Path yet, if it disappeared for any reason recreate it because we still need it.

Create a new layer above the "bottom" layer and call it "middle". Choose a normal hard brush and change its Size to 9px.

Change the Foreground color to #5895c4, and uncheck the Color Dynamics box.

Hit Enter again to stroke the path with the new brush on the NEW layer. Change the layer Blend Mode to Vivid Light

Finally, click on the pen tool, then hit Enter to get rid of the work path.

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And this is the final result.

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