Hello friend!
Today i want to show you a cool fire effect.

1. Make a new layer with a black square…. BACKGROUND LAYER
2. Make a new layer with a text “FUEGO” fire in spanish and the style Futura Md BT, color RGB 240;70;44 …….RED LAYER
3. Duplicate this layer and make text white…….FIRE BOTTOM

Select layer FIRE BOTTOM and Edit - Transform - Rotate angle 90 degree. We will add a Wind Filter and that filter only works on horizontal. We will rotate this layer back.
fire

For FIRE BOTTOM layer go to Filter - Stylize - Wind , select From the Left option. Apply this filter twice or three times it is up to you.
You should have something like this
fire1

Now rotate the layer back to horizontal.
Go to Filter - Blur - Gaussian Blur and choose 1,7.

VERY IMPORTANT
!!!!!!!!!!!Merge the FIRE BOTTOM with the BACKGROUND layer

Now go to Filter - Liquify and with the Turbulence Tool size 7; density 100; pressure 49 and from left to right start making waves.

fire2

Lets add some color. Select Image-Adjustments-Hue/Saturation and select Colorize so we can fiddle with the color. Bring Saturation up to 100 and set Hue to about 40.

Duplicate this colorized layer and select this duplicate in the layers palette. Select Image->Adjustments->Hue/Saturation again, this time with Colorize off. Set the Hue to -20 to make the flames red. Set the Blending Mode of this duplicate layer to Overlay. Now we’ve got some nice looking flames:

fire3

Now bring to front the RED Layer and right click on the layer name and choose Blending options:
fire4

Now Image - Transform - Scale a little the text
Now go to Filter - Liquify and with the Turbulence Tool brush between 4 and 7 and play with density , pressure , rate to see whici is the best for you.

Now you can burn with the Burn Tool, Dodge etc the two colorized layers and also you can liquify more for give another shape to the flames.

The final result

fire5