Simple Neon Glow

 

Start with a white background of an RGB image. Using the text marquee tool, put some nice fat text on the canvas. Fill the text with 100% black.

 

Now select Filter -> Blur and choose Gaussian blur. Blur the text with a setting of 3.

 

Select Image -> Adjust and select Curves (Ctrl+M). Select the freehand pencil tool and draw a shape roughly like the one below. Click on the smooth button a few times to smooth out the curve.

Select Image -> Adjust and choose Hue/Saturation (Ctrl+U). Click the colourise button and set the values as below:

Variations to this effect can be achieved with a large blur in step 2 and adjusting the curve in step 3. Try making more humps and dips to get different results.