https://i.stack.imgur.com/NrHy2.png
Put the chain all the way into the hub, then back off 1/2 a turn, connect to the cable.
Take up the tension, in 2nd gear, the smooth section of the hub needs to be 0.5mm out of the axle.
Something I've always wondered about - why the 1/2-turn loosening of the indicator chain before adjustment? I'm sure I've forgotten this in the past, and it seems to work fine.
If it’s not backed off 1/2 and it’s moving, makes it more likely to snap off!
@Thrustvector started
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https://i.stack.imgur.com/NrHy2.png
Put the chain all the way into the hub, then back off 1/2 a turn, connect to the cable.
Take up the tension, in 2nd gear, the smooth section of the hub needs to be 0.5mm out of the axle.