Use it for particle systems, usually. It's good for effects where you want to add something on top
Here's a quick example for a fire effect. You take some particles (left two) and use additive blending to add them to the scene. As they overlay, rather than getting rid of information in the scene, they add their brightness. This means the bright regions only get brighter.
It's best used for any effect where you want something that gets lighter. Lasers, fire, sparks, explosions (the fire part, anyway) are good candidates for additive blends. If you want to simulate the effect in Photoshop, just set a layer to Linear Dodge.
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Here's a quick example for a fire effect. You take some particles (left two) and use additive blending to add them to the scene. As they overlay, rather than getting rid of information in the scene, they add their brightness. This means the bright regions only get brighter.
It's best used for any effect where you want something that gets lighter. Lasers, fire, sparks, explosions (the fire part, anyway) are good candidates for additive blends. If you want to simulate the effect in Photoshop, just set a layer to Linear Dodge.