This is what we are going to make today
Ok let's start !
1)Open up a new document and make a black rectangle in a new layer
2)Now take your Elliptical Marguee Tool and make a selection over the total weight of the rectangle and press Delete when your done. Now control click the layer where your rectangle is this will result in a total selection of the shape.
3)Now goto Channels this is a tab next to your Layers
4)Create a new channel and fill it with a white colour.
5)Goto Filter – Blur – Gaussain blur with the following settings
6)Now press CTRL + L this will open up your levels window, use the following
settings... experiment with these settings until your satisfied.
7)Now you will see your new shape. Hold down control and click the channel
8)Now go back to your layers make a new layer and fill the selection field with black
9)You will notice a small line zoom in a bit and remove it with your eraser tool
10)Now we are going one step futher and put some effects on it start off with a drop shadow
11)Followed with an Bevel and Emboss, also choose contour if your prefer this
12) And finish with a nice gradient overlay
And voila this is your finished result