Here is the step by step tutorial:
Step 1: First we have to find a photo with some burning candle or you can use the image below:
Create a new layer and fill it with black, then go to Filter>Render>Lens Flare and use the following settings:
Step 2: Go to Edit>Transform>Scale (or select the Move tool and tick on Show Transform Controls) and scale the "lens flare" layer down
Press Enter to leave this mode
Step 3: Move this layer up a bit and change its blending mode to Screen to remove all the black areas. Now you just see the "lens flare"
Step 4: Press Ctrl-J to duplicate this layer and tick on Show Transform Controls checkbox(make sure you select the Move tool first) and rotate this layer 90o
Step 5: Duplicate this layer to two more layers and rotate them 45oCW and 45oCCW in turn
Step 6: Select all layers except the Background and press Ctrl-E to merge all of them. Change the Blending mode of this layer to Screen again
Step 7: We should blur the candle light a little a make it look more real by going to Filter>Blur>Gaussian Blur and use these settings:
Name this layer "Candle Light"
Step 8: We will make a simple glowing effect round the light. Duplicate this layer and go to Filter>Sketch>Chrome and use default settings:
You will see a white glowing effect wrap the light. Next we change the blending mode of this layer to Color Dodge. This mode will help our effect blend well with the light by absorbing the candle's glow
Press Ctrl-E to merge down this layer
Step 9: Go to Edit>Transform>Scale and reduce its size a bit and use the Move tool to place it on the top of a candle
Step 10: We had a good candle light but the color is still not great. So go to Image>Adjustments>Color Balance (Ctrl-B) and use these settings:
And it's all. You can see the result below: