A fire rainbow is formed by the refraction of light and requires the perfect concoction of plate-shaped ice crystals and sunlight falling at the correct angle. A fire rainbow forms in cirrus clouds.
The ideal and most probable time for the appearance of a fire rainbow ranges from mid-May to late July. However, there is no fixed position in the world where the phenomenon may take place.
The circumhorizontal arc is a rare phenomenon. The cirrus cloud formations and sun being at the correct angle and the hexagonal ice crystals being arranged in the perfect way is quite unusual.
When the light from the sun is refracted and passes through the water droplets present in the air, rainbows are formed. Fire rainbows, however, do not form because of refraction from water droplets. They form when light from the sun is refracted through ice crystals found in cirrus clouds.