Step 3
Create gradient patterns of light blue to transparent from top to bottom, stopping halfway down the page. Then create a dark blue to transparent gradient from the bottom left diagonal towards the centre to look like this. Next, place the gradient layer behind the masked wave layer, with normal blend mode.

Step 4
Mask out the surfer from the wave and paste him onto his own layer, naming it Masked Surfer. Duplicate the layer and hide the original. Now select the duplicate and apply Filter > Distort > Displace. Apply the settings shown and select the file displace_surf1.psd.

Step 5
Rename the displaced layer Displaced Surfer. Set the opacity to 70 per cent and begin to mask out parts of the layer so it looks something like this.