What kind of gauges / sender did you install? Something sounds wrong. I would check to make sure its properly installed, grounding, wiring, etc. Need to know a little more about the sender and its connection to the gauge.
In general, TC make heat when in fluid coupling mode, and dont make heat when in lockup. Tighter TC's make more heat sitting at a stop in traffic, and make less heat while moving compared to looser/stock TC's.
I have been using a DD pan and synthetic fluid which probably helps, but unless I am towing or sitting in stop and stop traffic for long periods of time, my Isspro EV series never moves off the peg ( 140* or less hot line ).
While crusing down the freeway at 70 you should be in lockup. If the temps were up, then should see them come down as soon as you hit lockup. If they were not up they should not go up by driving in lockup.
Lets say you are pulling the RV out of a camping spot in 1st/2nd gear, and it has a nice little incline, Hot Line temps of 230-250 are not uncommon.
If you are struggling to backup at RV into a spot, in reverse a lot, maybe a little incline to it, trans temps can get way up there. Watch these very close. Good use of a 2 wheel low kit, even for us auto guys.
My '97 the PCM would shift the transmission into OD as low as 30-35mph. But it does not go into lockup until 50mph. Unless you use the OD lockout button, typical driving in city traffic was using OD unlocked a lot. This used to get my hot line temps to about 180 or so. -- Using the OD lockout button will save this as you use 3rd locked instead of OD unlocked for city driving. -- Now I have a DTT smartcontroller. This keeps the transmission in 3rd until 50mph ( user adjustable ). Then it goes to OD and locked. So even if I forget the OD button city driving is 3rd not OD which appears to be less load on the transmission because now the temps dont go up at all, in these circumstances.