1. Begin with a new file, size and color doesn´t matter. Then create a new layer in the layers palette.

2. Take the Elliptical Marquee Tool and make a circle, hold down Shift to get the circle perfectly round, then right click inside the circle and choose Fill, fill the circle with a red color.

3. Now take the Rectangular Marquee Tool and draw out a rectangle as the image below shows. Then press delete

4. Then go to Edit>Free Transform or press Ctrl+T, hold down Ctrl while drawing the upper right corner.

5. Now duplicate the layer, right click layer1 and choose Duplicate Layer, then go to Edit>Transform>Flip Horizontal, then take the Move Tool and move the layer to the left.

Now should it look something like this.

6. Now go to Layer>Merge Down, then head over to the layers palette and right click layer1 and choose Blending Options, then apply this settings.

That’s it you are done!

This is what I came up with.