16. Hold down Shift+Ctrl+E once, to make the "Shading" layer merge with the "Flag" layer.
17. Remove any selections that are on your canvas.
18. Now click Filter > Liquify from the main menu.
19. When the Liquify page loads, make sure your Tool Options have a large "Brush Size" selected. In this tutorial, a 157 brush size was used.
(You can use the same values in the image below.)
20. Using that large brush, begin to shape the flag so that it appears to wave. Use the shading as a guide. Pull the flag "up" wherever the shading gets lighter and pull the flag "down" wherever the shading gets darker."
30. Click OK to close the Liquify screen.
31. Now you have your waving flag!
