Where is the correct position for the metal clip wear indicators of the front disk pads?
I believe it is on the trailing edge of the rotor going in the forward direction and on the outer pad. Service Manual is not clear on this.

 

it does not matter,

I prefer the position so that the disk does not compress them . it is better if the disc tends to dismiss. for less noise. So it depends on the right and left and the position of the pad equipped interior and exterior

 

The wear indicators should be installed on the leading edge for them to work as designed.

The brakes will be just fine if you install them on the trailing edge, but the "brake squeal" may not be as pronounced when that set of pads wears out and the indicators make contact with the rotor.

 

Based on my vehicle 2006 Impala front brakes, the outboard indicators were trailing the rotation and the inboard pads were opposite, dual indicators for each set. There are positioning pins on the pads themselves; they must not raise the pad while in the calipers. My pads went snug and laid flat in the caliper. I measured the thickness pad to base, dial caliper, of all the pads and matched pads to make each set as even as possible. I usually do not let the pads or rotor burn out. I changed the pads and rotors because a pad caused shudder at high speed, 70mph. The indicator will screech louder if the indicator is facing the rotation as opposed to trailing. This means the pads will announce that the pads are approaching the last 1/8 inch of the pad. Most common advice is to change pads and rotors at 0.250 inch of pad. This way before the indicator is activated, 8k to 10k miles of component life . My vehicle started its bad brake behavior at this point. You are doing your own brake job; make sure all components are serviceable and cleaned; this service can be done 2 to 3 times at the same cost of a brake shop; you perform this maintenance at your own risk.

I do not have access to actual brake manuals; I just looked at how my brakes were installed. I always drive as if my brakes will fail or fade; I am more cognizant during mountain driving ; I was taught this during Driver's Education.
A good mechanic cannot guarantee that your brakes will not fail; a certified mechanic, brake specialty shop, missed a leaking master brake cylinder on one of my vehicles; you have to be aware how your vehicle is behaving anytime that you drive it.

 

Hi! Install as shown in the picture

 

imo you should install them on the inside pad. with floating calipers, the inside pad can wear faster, especially if the caliper pins and brackets aren't cleaned and lubricated regularly.

 

Hi tech2 ! Excuse me . Forgot to specify - the brake pads with the indicator should be installed on the piston side

 

My setup has two indicators on each pad set, one trailing and one leading; the inside is the leading into the rotation. I do not have drilled or slotted holes to catch the indicator edge. All the pads are identical for my vehicle, except there are two right-side and two left side pads. The vehicle was setup this way when I bought it. The mileage is 80 K miles.
I did measure the new pad thickness, and matched for overall the same pad thickness. The vehicle runs great.