There are really only two locations that are accurate: the oil pan, or the exit hose if you have an oil cooler. I prefer an inline adapter in the oil cooler line where the oil leaves the engine, but in the pan is the most accurate. The thing to remember, if it's an electrical gauge, is that it will only be as accurate as it is grounded. This may mean drilling and tapping the sender for an external ground wire, especially if it is installed in the cooler line.
Take care,
-Chris
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