Create a hanging banner effect shown
In this tutorial I will explain how to create a hanging banner effect shown below. Its very simple and produces a realistic effect.
Step1: Create a simple square background to place the banner on.
Create a new layer Shift+Ctrl+N. Click on the Rounded Rectangle Tool using the setting below.
Create the rectangle shown below using this color #890030.
Using the Rectangular Marquee Tool cut the rounded rectangle to get the effect below.
Right click on this layer and select Blending Option
Create a new layer and using the Ellipse Tool, while holding shift create the circle shown below. The color i used is #630020.
place this layer behind the square background and position it to get the effect below. I change the opacity of the background so you can see the ellipse behind.
With that you should see the banner starting to show.
The bottom of the banner is an arrow tip, this can be found in the custom shape section.
At this point you should have this effect.
Well that is it.