They recently determined that brain processing occurs in waves through the whole brain, and not simply located to specific areas. When you find out that octopi

They recently determined that brain processing occurs in waves through the whole brain, and not simply located to specific areas. When you find out that octopi and similar creatures have "brains" spread through their limbs, it makes the psychedelic colour changing creatures' colourful waves make more sense. My theory, at least, is that the chemical and electrical property of brain waves trigger their colour changes, which result in them having the same visual patterns. If correct, this is why they visually pulse faster when they feel threatened or are preparing to react to something. If you compare the article about how the brain processes thought in waves, to the colour cycling of these deep sea creatures, they are remarkably similar.