Working with Outer Glow and Inner Shadow
Outer Glow applies a glow in any color you choose to all objects within the active layer. Since the Outer Glow style requires somewhere to work, the objects must be surrounded by transparent pixels. The Outer Glow style is an excellent way to create a neon effect to text. The Inner Shadow style applies a shadow to the inside of an object. Since the shadow is applied directly to the image, the Inner Shadow style does not require an image surrounded by transparent pixels. When you apply the Inner Shadow style, the shadow effect appears on the inside edges of the imagelike a reverse drop shadow.

Apply an Outer Glow and Inner Shadow Style
Select the Layers palette.
Click the layer you want to apply the Outer Glow style.
Click the Add Layer Style button, and then click Outer Glow .
Select from the available Outer Glow options:
Structure.
Allows you to change Blending Mode and Opacity (determines how much of the Outer Glow masks the original image pixels), plus you can add a bit of Noise (introduces a random shift to the colors of the Outer Glow), and even change the Color or use a Gradient on the Outer Glow.
For example, 50 percent opacity would let 50 percent of the original image colors blend with the Outer Glow.For Your Information
Creating Neon You can create realistic neon using the outer glow layer style and text. Just create a text layer using a rounded font, such as Arial Rounded, or Brush, and then choose a neon color for the font, such as red or yellow. Apply an outer glow using a light yellow for the glow color. Place the text against a black Background layer (for effect), and then tweak the glow options until you see a realistic glow appear around the text. Add a Bevel and Emboss style to the text to complete the effect of a glowing neon sign.
Elements.
Allows you to change the Technique used (softer or more precise glow), as well as change the Spread and Size of the glow. The precise option creates a realistic, but more complex Outer Glow. Spread determines the amount of image is used for the spread of the glow.
Quality.
Allows you to access the Contour of the glow to create interesting special effects, select the Anti-aliased check box to visibly smooth the glow (or drop shadow), as well as change the Range of the contour and Jitter (random value of gradients) of the glow.Contours are mathematical curves that determine the brightness of the glow at different levels.
Click Inner Shadow from the available styles.
Select from the available Inner Shadow options:
Structure.
Allows you to change Blending Mode and Opacity, as well as the Angle of the shadow. In addition, you can control the shadow's Distance, Choke and Size.
Quality.
Allows you to access the Contour of the shadow to create interesting special effects, select the Anti-aliased check box to visibly smooth the glow (or drop shadow), as well as add a bit of Noise to the final product.
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