Regardless of how many indices have you created on relation, only one of them will be used in a certain query (which one depends on query, statistics etc). So in your case you wouldn't get a cumulative advantage from creating two single column indices. To get most performance from index I would suggest to use composite index on (location, timestamp).
Note, that queries like ... WHERE timestamp BETWEEN smth AND smth will not use the index above while queries like ... WHERE location = 'smth' or ... WHERE location = 'smth' AND timestamp BETWEEN smth AND smth will. It's because the first attribute in index is crucial for searching and sorting.
Don't forget to perform
ANALYZE;
after index creation in order to collect statistics.
Update:
As @MondKin mentioned in comments certain queries can actually use several indexes on the same relation. For example, query with OR clauses like a = 123 OR b = 456 (assuming that there are indexes for both columns). In this case postgres would perform bitmap index scans for both indexes, build a union of resulting bitmaps and use it for bitmap heap scan. In certain conditions the same scheme may be used for AND queries but instead of union there would be an intersection.