It needs to be placed on the end of the tank, it should have a fairly unobstructed shot across the tank. It works on resonance frequency and so placement and timing of the pulses are critical to function.
They can be placed anywhere in the tank including behind rock work but try to keep a clear run in the first portion of the wave generation so it has a chance to build up. Take a look at wave motion and wave mechanics via a google search to understand the mechanics behind the generation of a wave. This is a excellent product by the way.
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