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With the engine running, warmed up, and the transmission in park, the fluid level should be in the crosshatch area or between the two lines on the dipstick -- not lower than the bottom line and not higher than the top one.

The automatic transmission dipstick is located at the back of the engine on the passenger side of the distributor.

(added to answer) Also remember that transmission dipsticks measure pints, not quarts. So if you are at the bottom line, you need to add 1/2 quart. If there is just a small drip on the tip of the dipstick, then you need to add a quart. It is best to add 1/2 quart at a time. Then, with the engine running, slowly manually shift through each of the gears down and then back up to park before checking the fluid level again.

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