I was on Lake Ontario south of the Village of Grafton on the shoreline. At 10:30pm EST. I noticed 3 lights over the Lake due west about 5-8 miles out in a line formation but at different levels. The light on the left was the lowest then the middle light was higher and the far right was the highest. They seem to form at perfect line. I'm and ex Canadian Military Recon Paratrooper and I try to learn everything I can about aircraft and flying. So at first what I saw almost looked like para-flares dropped from an aircraft. At this point i noticed that the lights were not descending at all. I also noticed that the lights were changing colors from blue to blue-green to red to turquoise. I know para-flares are orange. I continued to watch them for about 3-5 minutes. Then I noticed the far left light increased it altitude about 1000-2500(10 degrees) feet within a matter of 2 seconds. At the same time the far right descended altitude about 500-1000(5 degrees) feet. The center light did not move it during this. So now the lights still are just as bright but the far left is the highest and center and far right are at the same level. The light stayed at this formation for about another 8-10 minutes then disappeared. Its not like the lights burned out. When I lost sight of them it was like they were moving away at a high rate of speed. About 45-60 minutes later around 11:00pm EST, I heard fighter jets. I was still outside and looked again to the west and saw 2 fighter jets around the same altitude in full after burner flying CAP (Combat Air Patrol). The after burners came and when. They Aircraft had no navigation,landing or strobe lights. A few times I seen the Green formation combat light during one of their turns. The Military Fighter Jets had twin engines that I could see while they were in afterburner power. I assume they were Canadian F/A-18 fighters. The only issue is that I am about 50km from Canadian Forces Air Force Base Trenton. This base does not have fighters stationed there. Its an air lift wing using C-17s,C-130s,Airbus A319s and twin engine hueys for the search and rescue. The closest Canadian Air Base that has fighter aircraft is about 500km away. The Fighter aircraft stayed in that area only for about 10 minutes then climbed to a higher altitude and headed due west. I contacted the Public Relations Office at CFB Trenton and asked about military aircraft flying in that area. He reported that no military aircraft were flying that night over the lake. Only military aircraft was a C-130 about 80 miles north of me around 8pm EST. I know what I saw was not an aircraft of any sort. I have been around a lot of civilian and military aircraft my whole life so I can say I know what I am looking at was not aircraft.