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You've got several options:
1) Install in the pan. You can either weld a bung on the stock pan or buy an aftermarket aluminum pan and drill and tap for the sender.
2) Install an in-line sender in the cooler line. The best and easiest way to do this is to buy a Perma-Cool in-line auxiliary filter kit and put the sender in the port provided. This gives much better filtration plus a sender port all in one package. They also offer a kit with gage and sender, but if you have a gage preference, buy the one without, it still has the port.
3) Some trannies (E4OD?) have plugged ports available just above the pan rail. You can install the sender there.
I did the Perma-Cool filter with a VDO gage and sender on my truck, as well as a deep sump aluminum pan. I never see temps above 175-180 even when towing in OD.
You want to monitor HOT side temperature. If the tranny is running grossly hot and the cooler is bringing the ATF temp back down to normal, you'll still burn the tranny up. You want to know the max temperature the fluid sees.
Hey, StrangeRanger--- I'm planning to add a VDO trans gauge, too. I want to be able to monitor engine oil temp also. Do you see any problem with putting a second sensor there and switching the gauge between them?
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