This is really easy and I think it makes a nice effect.
Step 1
Select your gradient tool, Make sure it isnt hiding under the paint bucket tool.
Make sure that you have these options applied.
Step 2
First make sure you have white background and press D to reset the color.
And go CRAZY with the gradient tool, go all over the picture 10-20 times until you have something like this.
Step 3
Select your wave tool, it is in Filter / Distort / Wave.
Now press randomize
--- I got this ---
Step 4
Duplicate the layer. Right click on the layer and press duplicate, then ok. Double click on the background layer and press ok. It will be renamed layer 0.
Step 5
With the topmost layer selected go to Edit > Transform > Flip Horizontal and change the top layers blending option to lighten. The blending mode options are located on the top of the layers pallete.
Step 6
Now you can mess around with the image and do what you want with it.
Try coloring each layer different colors and so on.
Have fun!!!
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