NOTE: Click on image for larger size. Images Source: Pixabay and Freeimages
I created an action (.atn file) to transform an image into a pencil sketch. Feel free to download it and give it a try. I tested this action in PSE 7, 10, and 11 through 2019. It worked just fine. I believe the same will hold true for PSE 8 and 9.
If you have PSE 11 and above, load the .atn file via either the Actions panel or the Effects panel.
If you have PSE 7 through 10, you need to install this action so that it can be accessed via the Action Player (Guided Edit>Automated Actions>Action Player).
Windows: C:\ProgramData\Adobe\Photoshop Elements\x.x\Locale\en_us (or your locale)\Workflow Panels\actions
Mac: Hard Drive>Library>Application Support>Adobe>Photoshop Elements>x.x>Locale>en_us (or your locale)>Workflow Panels>actions
The results will vary depending on the nature and size of your image. I tested different sizes (in pixel dimensions).
Thank you all for downloading and testing this action! I really like how some of you took it a step further by bringing some color back, adding a photo filter, etc.
As you found out, depending on the nature of your image, sometimes a Levels adjustment is needed to give the sketch more contrast. You can also try other techniques such as Unsharp Mask or the High pass filter. Another option is to duplicate the sketch layer, change the blending mode to Multiply, reduce the Opacity.
Photoshop Elements 7, 10, 11, 12, 13, 14, 15, 2018, 2019 Photoshop CC & Lightroom Classic Windows 10 Pro