There is a switch in the valve body of the transmission that locks up the torque converter. It is called the 4th gear switch. It only allows the TCC lockup to activate while its in drive (4th gear). Also, engine rpms are monitored. The lockup only engages at cruise, not acceleration. Lastly, one of the switches on the brake pedal is used to disable the TCC lockup.
Since I am running a carb on my van, I had to install a vacuum controlled TCC lockup setup. Instead of using rpms, it uses engine vacuum to determine cruise and acceleration.