Stylish Text Effect

Start by typing the letter 'X' with arial black font having 120 point size and black color :

Control+click on the text layer to select it. Go to Select > Modify > Contract and contract the selection by 1 pixel :

Fill the selection with #6A6A6A color. While selection is active, go to filter>blur>gaussian blur and blur it around 4-5 pixels. You can now press control+d to deselect :

Now, apply these layer styles in it:

The text after applying above layer styles :

Now, select Line tool :

Set the weight to 1 pixel and draw two lines as shown :

Group and merge two layers and apply gaussian blur filter in it ( around 2.2 pixels )

Now, control+click on the first text layer to select it. Press shift+control+n to create a new layer. We are doing this to ensure the color we will fill in the next step doesn't overfilled :

Now, select 17 pixel brush as shown :

Set the foreground color to white and draw a line as shown :

Now, use 21 pixel soft feathered eraser tool and erase the part of layer shown by the circle :

Now, group all the layers. To group the layers, click on the area shown in the red circle :

Now, press control+e to merge all the grouped layers.

Fill the background with black color. Apply outer glow in the second layer as shown :

Our text is ready :)

Similar text after applying color overlay of red color and changing the blending mode to overlay.