Step-by-step after the jump.
Step 1: Choose your material. The width of the curtain panels (or single panel) should measure out to at least one and a half times the width of your bed. This ensures they won't be too taut to allow soft folds in the fabric. The height of the curtain is up to you but full ceiling-to-floor length panels will up the drama factor.
Step 2: Mount the curtain rod as close to the ceiling as possible. Again, for added elegance, attach the rod directly to the ceiling. Hang the curtains and step back to make sure everything is at the right height and centered.
Step 3: Now use the wire to hang the empty picture frame from the same curtain rod. If the frame is exceptionally heavy, you could attach it to the ceiling with set of eye hooks or anchors. The nearly-invisible wire will fade back into the curtains and the frame will appear to float above your bed.