Step 2-
Offset the New Layer Selection
With the selection active in layer 2, select Filter>Other>Offset and enter "15" in the horizontal space and -10 in the vertical space. This moves the selection 15 pixels right and 10 pixels up . Click OK to apply the effect to layer 2.
With layer 2 selected in the layers palette, duplicate the layer again as you did in step 1, naming it layer 3. Apply the Offset filter to this layer as well, with settings of 20 pixels right and -30 pixels down. IMPORTANT- do not deselect the currect selection, it will be used in the next step.
