Insert on a new layer have several small squares, selecting previously the Rectangular Tool and the command Edit ? Free Transform (ctrl+t).



Then make a copy of the squares' layer (ctrl+t) and blur out the copy, using the following options: Filter ? Blur ? Gaussian Blur.



We have to copy the ornament's layer and blur out the copy with another value:



Place the blurred copies under the basic ornaments' layers and change their colors, using Image ? Adjustments ? Hue/Saturation (ctrl+u):