Melt each color of candy melts separately in microwave-safe bowls. Heat them in 20-second bursts, stirring after each interval until smooth. Avoid overheating, as it can cause the candy coating to become thick or grainy.
Dip each pretzel halfway into the melted candy using a fork or spoon for support. Allow excess coating to drip off before placing the pretzel on parchment paper. Work steadily so the coating remains smooth and glossy.
Immediately sprinkle decorations while the coating is still wet so they stick properly. Transfer the tray to the refrigerator for about 30 minutes. Once set, the chocolate will be firm and ready to serve.