Transmission dipstick

[GREENPUS]

2005 - Corolla - LE - Auto with OD. 103,000 miles.

I'm a Toyota virgin so this question might be stupid. I'm having a hard time understanding the markings on the transmission dipstick and thinking the PO I bought the car from over-filled the tranny.

There are two markings on this dipstick. Cool and Hot.
Cool is one inch from the bottom of the stick and Hot is about 3 inches from the bottom.

When the car is cold "morning" the ATF is one inch above the Hot mark
When the car is hot "after 50 miles of driving" the ATF is one inch above the Hot mark
I've done the Hot measurement with the car running and off. The ATF level always measures 1 inch above the Hot mark.
Where in the $#$@#$%^ should this level be at? The car shifts good and the ATF doesn't appear to be foaming.

[invader]

It should be at the cool mark when cool, and at the hot mark when hot... Level is obviously too high. Let some drain out and check again, or drain the pan and refill with 3 quarts, then add just enough to have it on the proper mark. It should take about 3.5 quarts if you just drain without removing pan. ATF should be replaced at every 60000 miles anyway.

[don24mac]

The best way to check AT fluid level is to drive the Corolla for at least 20 minutes to thoroughly warm it up. Park on a level surface and leave the engine running and place the car in park. With the brakes engaged, put the car in drive for a moment. Then put it in reverse for a moment then back to park. Then, with the engine still running go check the level. It should read close the HOT level.

[GREENPUS]

Thanks!
At least I know now. I'll probably follow the DIY for a complete ATF change.
Just wanted to make sure I was checking the level correctly.