Step 4 - Creating the Flats
Time to create another pattern. This one will be easy.
Layers > New Raster Layer... > Ok
Selections > Load/Save Selection > Load Selection From Alpha Channel...> Selection #2 > Load.
On the Tools toolbar, select the Selection Tool (S)
On the Tool Options palette, Selection type: Rectangle
Hold down the Ctrl key on your keyboard. What we want to do here is remove the upper portion of our selection just above the shoulder:

So that it now looks similar to this:

On the Materials palette, set your Foreground color to red (#ff0000)
On the Tools toolbar, select the Flood Fill Tool (F) and fill the selection
Selections > Select None
Your image should now look similar to this:

What we're going to do now is give our pattern a round top. You'll probably need to really zoom in on the image for more precision.
On the Tools toolbar, select the Selection Tool (S)
On the Tool Options palette, Selection type: Rounded Rectangle
Start from the edge and create your selection over to the center vertical guide:

Continue following the vertical guide until your selection is now past the tip of the image:

We don't want the tip rounded, so be sure the rounded portion of the selection itself extends beyond the image:

Now we're going to angle the top of the selection slightly.
Selections > Edit Selection
You can't see the salmon color because our pattern is also red. I did this on purpose so as to help you try to create this visually.
On the Tools toolbar, select the Pick Tool(P)
Hold down the Shift key on your keyboard.
Grab the top right corner node and bring it down slightly. Try to visually picture how it will look:

Once your satisfied with the angle, take the selection out of edit mode.
Selections > Edit Selection
Now we cut the pattern.
Selections > Invert
Hit the Delete key on your keyboard
Selections > Select None
Your image should now look similar to this:

Let's create a selection of our new pattern, contract it by one pixel, and save it to the Alpha Channel.
Selections > Select All[Keyboard shortcut: CTRL + A]
Selections > Float[Keyboard shortcut: CTRL + F]
Selections > Defloat[Keyboard shortcut: CTRL + Shift + F]
Selections > Modify > Contract...> Number of pixels: 1 > OK
Selections > Load/Save Selection > Save Selection To Alpha Channel... > Save
Don't de-select yet!
Layers > Delete
Layers > New Raster Layer... > Ok
On the Materials palette, click on the Foreground color and select the Gradient tab.
Click on the image to open the available gradients.
Select Fading white and use the following settings:

On the Tools toolbar, select the Flood Fill Tool (F) and fill the selection:

Now we're going to move the selection downwards and add a small indentation grove.
Layers > New Raster Layer... > Ok
Selections > Edit Selection
To make sure it goes smoothly, let's switch to another tool.
On the Tools toolbar, select the Move Tool (M)
Using the arrow keys on your keyboard move the selection down one pixel.
Take the selection out of edit mode.
Selections > Edit Selection
On the Materials palette, set your Foreground color to black (#000000)
On the Materials palette, click on the Foreground color again and select the Gradient tab.
Click on the image to open the available gradients.
Select Fading foreground and use the following settings:

On the Tools toolbar, select the Flood Fill Tool (F) and fill the selection:

Now we're going to move the selection downwards and clean it up.
Selections > Edit Selection
Using the arrow keys on your keyboard move the selection down four pixels:

Take the selection out of edit mode.
Selections > Edit Selection
To give it more of a shadow look we'll feather it slightly.
Selections > Modify > Feather... > Number of pixels: 5 > OK

Hit the Delete key on your keyboard:

Now we'll reload the selection and blur it.
Selections > Load/Save Selection > Load Selection From Alpha Channel...> Selection #4 > Load.
Adjust > Blur > Gaussian Blur > Radius: 2 > OK
Selections > Select None
Your image should now look similar to this:

The darker the image, the deeper the indentation looks. You can control the look of the depth simply by lowering the layers opacity.
On the Layers palette, lower the opacity down to about 85:

Let's put this flat into a group.
On the Layers palette, highlight the Raster 4 layer:

Layer > New Layer Group... > Name: lft edge > OK
Now, drag the Raster 5 layer into the group. It should now look similar to this:

Highlight the lft edge group layer.
Layers > Duplicate
Image > Mirror
Okay, let's rename this duplicate group. Double-click (or right-click > rename) the Copy of lft edge group layer and name it rght edge.
We don't want both sides of our image to look the same.
Highlight the Raster 4 layer of the rght edge group.
Set the Blend Mode to Difference and lower the layers opacity down to around 30:

Your image should now look similar to this:

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