Create an Editable On Screen Text Effect using Smart Objects

Create a New Document
Lets start by creating a new document which is 900 x 600 pixels at a resolution of 300 pixels/inch, make sure Color Mode is set to RGB.

Create the RGB Pattern
Fill the Background with Black. Get the Rounded Rectangle Tool. Set Mode to Shape Layers, set Radius to 4 pixels. Under Geometry Options set to Fixed Size and set Width to 7px, Height to 26px. Check Snap to Pixels. Now click on the canvas to create a rectangle. Double click the shape layer thumbnail and set color to #ff4c22. Get a Vertical Guide and snap it to the center of the rectangle. Hit Command+J to duplicate the layer, get the Move tool and nudge the layer 9 pixels right, then change color to #1283f9. Duplicate the layer again, nudge it 9 pixels right and set color to #79f95a. Repeat it once more and set color to #ff4c22. Get another vertical guide and snap it to the center of the last rectangle. Get the Rectangular Marquee Tool and make a selection like in the below image. Go to Edit > Define Pattern and name the pattern "RGB" and hit OK, then deselect.

Create the Text
Now you can delete all shape layers and clear the guides by going to View > Clear Guides. Get the Type Tool, set Text Color to any color and type your text. I used Futura Md BT, you can use any font of your choice and remember you can change the text and the font any time after we’re finished.

Apply the Pattern
Create a new layer on top and name it "Pattern". Fill the layer with any color and apply a Pattern Overlay Layer Style using these settings: Blend Mode => Normal, Opacity => 100%, Pattern => RGB, Scale => 25%. Mask the "Pattern" layer by Alt-clicking the line between "Pattern" layer and the text layer. Now select both layers in the Layers Panel, go to Layer > Smart Objects > Convert to Smart Object. Name the Smart Object "Blur". Duplicate the "Blur" layer and name it "Text".

Smat Objects and Filters
Now we’ll apply some filters to our Smart Objects. You can think of smart objects as Layer Groups that you can apply filters on. When you double click a Smart Object Photoshop opens it in a new document window and after saving it all the changes will be updated in the main document. Another advantage of using Smart Objects is that you can change the parameters of filters you applied on them anytime. With the "Blur" layer selected go to Filter > Blur > Gaussian Blur and apply with a Radius of 20 pixels. Then Go to Filter > Blur > Motion Blur and apply with an Angle of 90 degrees and a Distance of 50 pixels. Now apply a Pattern Overlay Layer Style and use these settings: Blend Mode => Overlay, Opacity => 75, Pattern => RGB, Scale =>25%.

Smart Objects and Filters
Go to the "Text" layer in the Layers Panel. Go to Filter > Blur > Motion Blur and apply with an Angle of 90 degrees and a Distance of 15 pixels. Add a Pattern Overlay and use the settings from the previous step:
Blend Mode => Overlay, Opacity => 75, Pattern => RGB, Scale =>25%.

Nested Smart Objects
Select both Smart Object layers in the Layers Panel and turn them into another Smart Object by going to Layer > Smart Objects > Convert to Smart Object. Go to Edit > Transform > Perspective and tweak the perspective in anyway you want. I grabbed the top right corner and moved it upwards. If you’re using an earlier version of Photoshop than CS4 you can’t change the perspective of a Smart Object. So you can rasterize first. But the text will not be editable any longer, so you better duplicate the layer first just in case. Now if you want to change the text, size or font, here’s what you should do: First double-click the "Text" layer thumbnail, it will open the contents of the smart object in a new document window. In that document, double click any of the two smart objects and it will open in another document window, in which you can reach the text layer and you can change the text or text attributes. The thing you should not forget is to save the BOTH smart object documents.

Congratulations
This is my final image, I duplicated the document and change the text, then i put all the text elements into one document. Convert them all into one Smart Object and applied a Distort transform and little Levels adjustments. Hope you enjoyed this tutorial and had fun making it.

Another Example
I’m sure you can get great results using different fonts, sizes and symbols. Here’s another example.

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