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Creating colorful DJ Disco light

Start by creating new file with equal height and width. Create rectangle equal to file size using rectangular shape tool.
Double click the layer to open layer style window. Apply settings as shown.

Create a circle using elliptical shape tool.
Press Ctrl+J to duplicate the layer. Press Ctrl+T and move a few pixels right. Press Ctrl+J and Shift+Ctrl+T several times to create the design as shown. Fill the circles with different bright colors.
Similarly fill the square with the number of bright color circles.
Select and merge all the circles layers. Duplicate the layer. From filter menu select Blur>>Radial Blur. Apply settings as shown. Move this layer below the top layer in layer order in layer palette.

Select the top layer. Change the layer mode to "Vivid Light".

Select and merge all the layers. From filter menu select Distort>>Spherize. Apply settings as shown.

 
Create a circular selection of the spherize area using elliptical marquee tool. Press Ctrl+Shift+I to inverse the selection . Press Delete to remove the background.
Scale down the layer.
Duplicate the layer. From filter menu select Blur>>Radial Blur. Move this layer below the top layer in layer order in layer palette.

Duplicate the blurred layer and reduce the opacity to 50%.
Select the top layer. Change the layer mode to pin light.