The Paulding Light appears to hover and move along a power line right of way. The colors shift continuously - red and white are the most common although green and blue have been reported. It does not appear every night and the fullness and brightness of the moon has no effect on whether it will appear or not.
Several amateur studies have been conducted, all of them concluding that the lights are the result of the mid-1960s rerouting of US 45, giving the viewing spot a slightly angled view of sporadic traffic along the new highway. The colors then match headlights, tail lights, and the warning lights of the occasional emergency vehicle.