Rainbows are full circles
Geometrically, every rainbow is a complete circle centered on the antisolar point. The horizon blocks the lower half from view for observers on the ground. Pilots and skydive instructors regularly see circular rainbows.
Optics & Atmosphere
A rainbow is not shaped like an arch in the sky. It is part of a full circle, with the horizon hiding the rest from view.
A rainbow is actually a full circle. You see an arc only because the horizon blocks the lower half from view. From an airplane above the rain, you can sometimes see a complete circular rainbow below you. The curve exists because the optics that create a rainbow operate at a specific fixed angle from the antisolar point, the point directly opposite the sun from your perspective. Each raindrop in the air acts as a tiny prism and mirror. Light enters the front of the drop, refracts (bends) as it passes into the water, reflects off the back interior surface, and refracts again as it exits. Red light exits at about 42 degrees from the antisolar point and violet exits at about 40 degrees. Because these angles are fixed by the physics of water, the only raindrops that can direct red light to your eye are those that sit at exactly 42 degrees from your line of sight to the antisolar point. Every such drop forms a circle at that angle around the antisolar point, which is why the rainbow traces a circular arc in the sky.

Rainbows are full circles
Geometrically, every rainbow is a complete circle centered on the antisolar point. The horizon blocks the lower half from view for observers on the ground. Pilots and skydive instructors regularly see circular rainbows.
The magic angle
Red light exits raindrops at 42 degrees from the antisolar point. Violet exits at 40 degrees. These angles are fixed by the refractive index of water. Every rainbow has these same angles.
Common myth
No two people see the same rainbow. Every observer sees light from different raindrops, because the drops forming your 42-degree red ring are different drops from those forming anyone else's. A rainbow is personal to each observer.
Secondary rainbows
The fainter rainbow sometimes visible outside the main arc is a secondary rainbow produced by light reflecting twice inside each raindrop. This reverses the color order (red on the inside) and appears at about 51 degrees.
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