This study identifies the relationship between traffic data quality obtained from loop detectors and their location. Traffic data basically shows traffic flow conditions and thus, these information can be used as inputs for various transportation management strategies. Out study presents how to determine optimal downstream detector location on merging area in order to enhance the effects of ramp metering strategies. Microscopic simulation model, PARAMICS, is used as the main analytical tool. Assuming that detector location relies heavily on traffic flow characteristics in each roadway segment, we perform statistical analysis to identify homogeneous traffic conditions on merging area.