Circumhorizontal Arc, (sometimes known as Fire Rainbow for its flame-like appearance) is the rarest of all naturally occurring atmospheric wonder. It is an optical phenomenon, an ice-halo formed by plate shaped ice crystals in high level cirrus clouds.
For a circumhorizon arc to be visible, the sun must be at least 58 degrees high in a sky. Cirrus clouds containing relatively large plate shaped ice crystals must also be p
Source: http://www.atoptics.co.uk/halo/chaform.htm