The yellow dot should be lined up and directly next to the valve stem, which is the wheel’s heaviest point. The red dots identify where the tire is flattest — the lowest point on a tire.

If you've got both, though, the red dot takes precedence. It's easier to make up a weight offset with some tacked-on grams than it is to counteract a physical bump in the tire. Yellow dots are ...

Yellow dots mark where a tire's weight is the most minimal, and red dots indicate where the wheel is lowest, helping tire technicians properly balance things to account for irregularities.