- Select two appropriate colours (for gradient shades)
- Select Rounded Rectangular tool:
- Draw a simple ellipse:
- Create a new layer:
- Ctrl + Click on the vector mask in the first shape layer so that you can select only the ellipse:
- Select the Gradient Tool:
- Make sure that the gradient consists of the two colours you have already selected (you can find this in the top left corner under the menu):
- Select the new layer while the ellipse marquee is still highlighted, and draw a gradient from top to bottom:
- Optionally, an inner glow can give a nicer effect to the shape by right clicking the second layer, and selecting "Blending Options":
You can tweek the above settings for colour, size, and opacity of the glow.
- Click OK, and review the effects of the blend:
Note: the ellipse marquee selection should not be un-selected at this point.
- Create a new third layer:
- Select the Elliptical Marquee tool:
- From the top-left settings under the menu, select the intersect option:
- Draw an ellipse marquee selection outside the image to intersect with the top half of the image:
- Change your primary colour to white, then select the gradient tool with the white to transparent setting in the top-left corner under the menu:
- Draw a gradient on the new layer from top to bottom as shown below:
- Finally, deselect the marquee and review the image:
This can now work as a button image as shown in the below example: