Now, This is gospel..
Top is discharge, meaning "out"
Bottom is return, which means "in"
Now what you want to measure is where this comes into play.
We "reccommend" installation in the "return" cooler line so you know what the trans is seeing coming back to it. That is where we measure.
Some try to install it in the pan or the mainline pressure port. By measuring the pressure port temp is basically measuring the case temp as that oil not flowing to a source, is stagnent oil, meaning it just sits there and is pressurized by oil BEHIND it so not accurate.
Pan oil is not that accurate either. that is just what is in the pan and not what temp "working oil" is.
If you want to know what Converter discharge oil; temp is, then the top line is what you want. Cooler oil is a direct discharge from the converter and returns to an open source through center support for lube and eventually "bleeds" back into the pan after lubrication of rotating internals has been accomplished. That is the circuit.
Now ALL other trans in Gm's stable , with the exception of the 4l6oE, has a bottom out top return property about them. So in fact it is "Backwards" of all other gm trannys.

Thats the truth.
Bruce
WE4
PTS XTREME