3. Layer Styles

Apply the following Layer Styles to the ‘main’ or ‘bar’ layer:

Inner Shadow
Gradient Overlay

Now you should be left with a result like so:

4. Highlights

Select the main bar layer and contract the selection by 2 pixels. (Select > Modify > Contract)

With the Gradient Tool make a White to Transparent gradient from the bottom to near the top.

Change the Layer Mode to Overlay.
If you still have the selection up, contract the selection again by 1 pixel. If not, reselect the bar and contract the selection by 3 pixels.
Duplicate the highlight layer and press delete.

Now select the main bar again, this time you don’t need to contract the selection. Just make a White to Transparent gradient inside of the selection.
Delete half of the gradient vertical-wise.

Change the layer mode to Overlay and lower the opacity to 70%.

5. Text

Add your text now inside of the bar. I used Tahoma 11pt with no AA (Anti-Aliasing)
I also added a solid Drop Shadow.

Your Gradient Navigation Bar is now ready for slicing and use in a website template, or wherever you’d like to use it!