How to Make a Mirrored Ripple Effect with Gradient
Choose a photo you would like to use. I chose this winter scene.
Copy your picture, then open a new document in Photoshop and press Ctrl+V to paste the picture.
Use the Rectangular Marquee Tool and select a part of the picture that you would like to use.
Press Ctrl+J to paste the selection into it's own layer. Turn off the visibility of the layer with the original picture (Layer 1). Make sure Layer 2 is selected and hold down the Alt-key while you press on the picture and drag down. This will duplicate the image. Once you have done this, arrange the two pictures like they are shown below. (You may have to increase the canvas size)
Lock Layer 2. Make sure Layer 2 copy is selected and go to Edit, Transform, Flip Vertical. This will flip the image upside down.
Then, go to Filter, Liquify and use the tools to create water-like ripple effects. Make sure you do not go near the edges of the picture. Once you are done, it should look something like this:
Double click on Layer 2 copy to open up the Layer Styles. Click on Gradient Overlay and create your own custom gradient.
Once you have created a gradient you like, press ok.