1. Create a New image at 1200x800 with a White background. Use the Text Tool to create some vector text using these settings.

Settings used:

• Font Name = Your choice — I used Scriptina
• Size = 150
• Width = 0
• Create as = Vector
• Antialias = Checked
• Stroke = Transparent (Null)
• Fill = Gradient | Grey accent

For the Grey accent gradient, use these settings.

Settings used:

• Angle = 0
• Repeats = 1
• Invert = Unchecked
• Style = Sunburst

2. Go to Effects | 3D Effects | Drop Shadow... use these settings.

Settings used:

• Vertical = 4
• Horizontal = 4
• Opacity = 100
• Blur = 0
• Color = Black
• Shadow on new layer = Unchecked

Press Ctrl+A, Ctrl+F, then Ctrl+Shift+F to create a selection. Make the Background layer active, then create a New layer. Go to Selections | Modify | Expand... expand by 4. Press F to activate the Flood Fill Tool. Fill the selection with the Grey accent gradient, but make sure you check Invert before doing so.

Press Ctrl+D to Select None. Select the topmost layer, then Merge Down the layer (Layers | Merge | Merge Down)

3. Create a New layer. Press B to activate the Paint Brush Tool. Reset the tool, then set the Shape to square and Hardness to 100. Set your Foreground color to #b1fe00 and your Background color to #97e7e7. Left-click to paint a green square, then right-click to paint an aqua square somewhere on your image (away from your text). We will temporarily need these "swatches" in order to use Black and White Points in the next step.

4. Select the middle text layer. Go to Adjust | Color Balance | Black and White Points. Press the Reset button. Check both Preserve lightness and Balance to grey.

Click the eyedropper under White, then click on the aqua swatch within your image. Next, click the eyedropper under Black, then click on the green swatch within your image. Your text should turn pink in the preview window. Press OK. You can now delete the topmost layer.

5. Press Shift+L to use Colorize. Set both Hue and Saturation to 0. Press Ctrl+A, Ctrl+F, then Ctrl+Shift+F to create a selection. Create a New layer. Flood Fill the selection with the following Gradient.

Settings used:

• Gradient = Rainbow pastel
• Angle = 90
• Repeats = 0
• Invert = Unchecked
• Style = Linear

Press Ctrl+D to Select None. Set the current layer blend mode to Soft Light. Duplicate the current layer. Set the current layer blend mode to Color (Legacy).

Hide the Background layer, the merge the visible layers. Go to Adjust | Hue and Saturation | Hue Map... use the Neon glow preset. Next, press Shift+G to adjust the Gamma. Make sure Link is checked, then change the Red, Blue, Green value to 0.68

6. Press Ctrl+A, Ctrl+F, then Ctrl+Shift+F to create a selection. Make the Background layer active, then create a New layer. Go to Selections | Modify | Expand... expand by 2. Flood Fill the selection with Black. Select the topmost layer, then Merge Down the layer. Press Shift+B and set the Brightness to 50 and Contrast to 30.

Finally, go to Effects | 3D Effects | Drop Shadow... change the Opacity to 25, then press OK.

Optional: You can press Shift+H to use Hue/Saturation/Lightness to shift the colors around.

That's it! Now you can create colorful Rainbow Text.

Rainbow Text - Sample