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Now mask out the sky leaving only the hills. Then desaturate the hills and water color to -61 using Hue/Saturation.
Now by using the Stamp Tool (S) clone the stick in the 'ocean' layer that is creating a distraction.
Since we are creating a stormy environment, we need to create water splashing against the rock on which our characters are standing. Import the water splash image into Photoshop and select the Red layer from the Channels pallet.
Then select Calculations (Image>Calculations) and select Red from the Channels dropdown list.
Once the Calculation is checked OK an Alpha 1 layer will be created in the channels pallet. With the 'Alpha 1' layer selected set the Levels as shown to create maximum contrast between the water splash and the background that are to be separated.
Now go to 'Select>Load Selection' and select Alpha 1 from the Channel dropdown list and check OK to create mask around the splash.
Separate the water splash into a new layer by holding Ctrl+J. Then import the splash onto the working canvas and place it before the rock as shown.
Following the previous step create water splashes around the rock.
In this step we will be adding few rocks that we often find near a shore. Import the image of the shore rocks on to the working canvas and place it on the left side of the canvas as shown.
Now by using the soft Eraser Tool(E) erase the sky and the unwanted part of the image. Then desaturate the shore rocks layer to -61 to match the color of the environment we are creating.
In this step we will be creating a green hill located a bit closer than the previously placed hills. Before creating this hill lets refer the reference image of a village and hills covered with fog. Here we can observe how the bases of the hills are being covered by fog and mist. Hence we need to create the same effect to get the natural depth.
Import the image of the hill and place it on the left side as shown and resize it to required proportions using Move Tool(V).
Using the soft Eraser Tool erase the sky from the 'hill 2' image and desaturate it to -61 using Hue/Saturation.