There are various methods to evaluate the forming limit of a sheet, and these criteria can be classified as position-dependent, time-dependent, and position-time dependent according to the basis of judgment. However, these criteria have a single function and can only find the forming limit of the sheet and cannot determine the strain distribution, strain change, or fracture location during the sheet forming process. This paper introduces a time–location-dependent method, i.e., the spatial strain rate method, which is used to detect the onset of necking of a sheet. The spatial strain rate is directly based on the strain and can not only find the forming limit of the sheet but also depict the strain distribution and strain variation during the two phases of the experimental process—distributed instability and concentrated instability—as well as predict the location of sheet fracture. The spatial strain rate of AA5083 aluminum alloy of different widths was analyzed and verified in detail via Nakazima experiments using digital image correlation techniques and compared with the guidelines published in the literature in recent years.