Volcano Dragon Effect

The first you will open this picture:

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And open picture below, use Magic wand tool to remove white background

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In layers window, you will have:

Change blending mode of layer 1: Overlay

You will get the result like this:

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Duplicate layer 1:

The effect has become more clear

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Go to Blending Options of layer 1 (or layer 1 copy) and set something like the picture below:

after that, you will get:

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Select fire layer, then go to Filter / Brushes Stroke / Ink Outlines

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Duplicate this layer, use Magic Wand, click on dark areas of the picture then press Delete 2 or 3 times

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Now you will create a new layer, pick Brush tool, set the color is white, draw an eye of dragon like the picture below:

Change blending mode of eye layer: Overlay

Duplicate 5, 6 times

Merge all of layers, press Ctrl + Shift + E
Duplicate this layer then apply filter to this layer copy: Filter / Stylize / Emboss

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Soft Light

Continue to use Magic Wand one more time, select dark areas and press Delete

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You will get the result like this:

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Merge all of layers one more time, press Ctrl Shift E, use Dodge and Burn tool to brush mark areas below:

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You will have:

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Add some text that you like

Finally, this is my final result ^_^

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