How can chromatophores help a squid?

Chromatophore is actually a general term for the color containing cells in organisms. Squids usually have either melanophores or erythrophores, a melanophore contains brown or black pigment and an erythrophore contains red pigment. Squids will change colors according to mood, but some species such as the Humboldt Squid use flashes of red and white as a form of communication.