Awesome looking fish by the way! I'm new to cichlids too.
I've read that although they are pretty fish anyway - their colors are more vibrant and fins are spread when they are establishing dominance/territory or just plain old fighting. That it can even just be used as a warning. Like if he's chilling somewhere and another comes up he may do that just to say hey back off.
I have a jack Dempsey, a jewel, and 3 convicts (one being female) and currently paired off and sharing a cave where I'm sure I'll have fry soon.
Sent from my iPhone using Aquarium Advice