most people put the chain under the jaw, and usually on young horses 3 yrs and under. they forget that the horses jaw is quiet sensitive when teething.
i find under the jaw to be quiet harsh on young horses, and the only way they can get away from the pressure is to go up (rear)
over the nose is better, but city girl is correct as usual.
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I think the chain over or under in the wrong hands..can do huge damage to bone and nerve-endings around a horses face
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cheers