This is what we create in this tutorial:

Step 1

Open Photoshop and create a new document of size 500 pixel width and 500 pixel height.

Step 2

Choose the foreground colour as blue (#235d8e). Grab the Horizontal Type Tool and type in whatever text you want the effect to be applied to. It is ideal that you choose a rather heavy typeface like the one I have used which will highlight the effects that we are going to apply to it. I chose Impact, 72 px.

Step 3

Let's apply some style now:

You should get something like this now:

Step 4

Now we will add the gloss to the text. For that click on the layer thumbnail next to the type layer on the layer palette while pressing the Ctrl key.

You should have the type layer outline selected like this:

Now pick the elliptical marquee tool from the toolbar. Make sure that the 'Intersect with selection' option is enabled as shown:

Now click and drag to make a selection as shown below:

After you release your mouse you should end up with the intersection of both the selection which should be this:

Now we will need to shrink this selection a bit. For that choose Select>Modify>Contract and give a value of 2 pixels.

Now create a new layer and rename it as 'gloss'. Choose the Paint Bucket Tool and fill the selection you have just made with white (#ffffff). Lower the opacity of the gloss layer to about 80%. You should get the following effect now: