Typically, the Mylar is mounted above the lights, or next to the lights, with fans blowing from beneath to elevate and wiggle the "flames". For "coals" , you could use mylar below the lights if you wanted to, but you may find just using aluminum foil crumpled up a bit will be easier to get and work with. If you want to have the coals and the flames, you can use both materials, or even use them along with day-glo/blacklight orange and red paints on the foil or bottom surface to help push the effect.
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