1. Open a new document I'm using 200x600. Using the Rectangular Marquee Tool select a good portion of the canvas but be sure to leave room on both sides.
2. Using the Gradient Tool make a line through it and you should get something like this.
3. Go to Edit > Transform > Perspective and connect the bottom like this.
4. Now lets make it wavy. Go to Filter > Distort > Shear and select Repeat edges and make it how you would like I'm doing this.
To keep things simple for now lets just duplicate this once. In the layer palette, press CTRL+J to duplicate the tentacle layer (your only layer), or you could press Layer > Duplicate Layer.
On the top layer go to Filter > Distort > Shear and use the same settings as in the last section, similar to these settings.
On the layer below that use almost the opposite of those settings...(this is personal preference so adjust however you would like).
Now you should have something like this
Optional: Adjust them a little so you can have more overlapping.
Now let's start to overlap the tentacles. We will cross the top cross
Because the bottom is so slight that we will leave the overlap it has.
CTRL+click on the bottom layer in the layer palette to select it. (IMPORTANT: Make sure you have the lower layer selected w/ the dotted line BUT you are on the top layer!!)
Simply erase through the cross and you will have your overlap.
You can go really crazy with this and do as much overlapping as you want.
Enjoy!
