Text Effect Two,

Here is what you're going to be making. Example
1. Edit your photo any way you want it.
2. Add your text, then Rasterize the layer. Right Click>Rasterize Type
3. Go up to Filter>Liquify
4. Drag the your text in a little wave form. Then click ok. Example.
5. Type out your text and do steps 2 and 3 over again, but this time drag your text in the opposite direction.
6. Now make a new layer, and select a Wet Media brush, color black, and trace the shape of the text. Fade it if you have to. Example