The best place would be either in the bottom tank of the radiator (the manufacturers standard location) or in a joiner in the bottom radiator hose. If you put it anywhere upstream the fan will try to run continuously - the engine will hardly reach operating temperature (beating on the fan and drawing current off the battery unnecessarily). By placing it where the coolant has passed through the radiator, the temp sensor will 'know' it's temperature had dropped to below operating temps and shut off. Get one of those hose adapter things off ebay. Cheap and they work.
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