Though it is very common thing to make in Photoshop, but very short technique to make Smoke in Photoshop. Here we are going to start.
1. Take a new file of any size, I’m taking 560×600 px size with 72 resolution and RGB color mode. Try this effect on Black background, it will give better look.
2. Create New Layer and while using Polygonal Lasso
3. Now pick Dodge tool
4. Now select the Burn tool
5. Now run the command Filter >> Distort >> Wave and give the following settings:
Here is the result:
6. Now run the command, Edit >> Fade-Wave and give the following setting:
This will come:
7. Now repeat this distort and fade method maximum 10 times, or untill you think it looks best.
8. Now press Ctrl+U (or you can run the command Image >> Adjustment >> Hue/Saturation), switch on Colorise option and hit ok.
9. Now goto Layer panel and Lock the layer transparent pixels:
10. Bring this color #d1d1d1 in Foreground color palette and fill the layer, Finally you will get this Smoke in Photoshop: