I woke up around 4:30 am this morning and noticed what I at first assumed was a plane outside my window. Then I realized it couldn't be a plane because it was hovering in the sky, not flying. I got up to take a closer look and saw another "plane" lower and closer. I observed the lower and closer object for a while, again, not flying, just hovering - it was moving side to side, so it couldn't be a star or a planet. It was very bright in the sky ( much brighter than any of the stars in the sky - and the other hovering object which was further away) and it was flashing blue, white and yellow. When I couldn't figure out what it was, I woke my husband and got him to take a look. He couldn't figure it out either. He got the binoculars out and we were able to take a closer look - the lights weren't just blue, white and yellow, they were every colour of the rainbow and they were pulsing in what appeared to be a random pattern incredibly fast. It was really bizarre - definitely unlike anything either of us had ever seen before. It also appeared to change shape - from triangular (which it was most of the time) to crescent shaped to more oblong - like it was flattening out, if that makes sense. It was really far away, so even with the binoculars it was hard to see, except for the lights, which, as I said were so bright and pulsating so fast! I tried to take a picture and video of it on my cell phone, but the screen only showed pitch black.I observed it for about two hours (it could still be seen through the binoculars even in daylight.) I left to go to the bathroom and when I returned, it was gone.