Step 1
Open a new document - 600 by 600 pixels and fill it with a radial gradient (start from the left side of the canvas) using a shade of orange and black.
Step 2
Create a new layer called "ground".
Select the Pen Tool (Shortcut-P) and create a path as shown in the figure. Then use the Convert Point Tool and drag the anchor points within the canvas to form a selection with smoother curves.
Step 3
Right click > Make selection. Fill the selection with #000000. Set layer opacity to 37% and the blend mode to Overlay.
Step 4
Duplicate the "ground layer" and then click Edit>Transform>Rotate 180 degrees. Move the replicated "ground" and place it just above the original one on the canvas.
Step 5
On a new layer called "tree", sketch a rough tree using the brush tool. This will act as the base image which you can 'trace' over with the Pen tool. Create a new path using the pen tool. Then use the Convert Point tool to change the sharp lines into a better looking tree. Right click > Make selection.
Step 6
Fill the selection with #000000. Grab a 2-3 px hard eraser (Shortcut-E and then right click to select eraser tip size). Erase off a few bits of the branches and edges to create a more rugged tree. Add a vector mask to this layer (button next to layer styles in the layers palette). Set the foreground colour to #000000, select a 100-300px softbrush and brush the outsides of the tree to make it fade out into the background.
Step 7
New layer - Select the Elliptical Marquee tool and make a selection as shown. Then click Select > Feather and set the feather about 50-60 px depending on the size of your selection. Set the foreground colour to black and the background colour to white. Then Filter > Render Clouds. Change the blend mode to Overlay (Linear light also creates a neat foggy effect). Make a similar selection on the right hand side of the tree on a new layer with default settings. Place the fog cloud layers above the "tree" layer.
Step 8
New layer- Once again use the Elliptical Marquee tool (hold Shift this time) and make a selection as shown. Select > Feather - 20px or so. Fill the circle with a dull yellow colour. On a new layer use a 20px hardbrush and brush over the top half of the circle with a darker yellow. Set the layer's blend mode to Lighten. Place this layer under the layers created in Steps 6 and 7 i.e. the fog layers.
Step 9
Add some text and you're done!
