Timing Chain Stretch Issue

[stepper]

Hello,
I'm fairly new here. I'm in the process of winter maintenance on my 240D 616 engine. I'm attempting to check my timing chain stretch. I've already used the matching of the cam shaft alignment mark with the crank shaft TDC mark and they match well. The issue I'm having is with cylinder 1 intake valve .080" dial indicator movement. The procedure I've read mentions "to remove all valve lash" with cam lobe perpendicular to rocker arm. Not sure what that mean, but I'm assuming it mean to remove the clearance between the rocker arm and the cam lobe. So with the peak of the cam lobe pointing perpendicular to the rocker arm I tightened the valve adjustment nut (finger tight) to the rocker arm. Zero'd out my dial indicator and began to rotate the crankshaft. What I noticed was the dial indicator moved .003" (valve more closed) with the peak of the cam lobe at the 3 o'clock position then as I continued to rotate the engine the dial indicator started moving in the direction of the valve being opened. Once I reached a dial movement of .080" I checked the balancer marks and I was at 15 degrees after TDC. What I don't understand is why the dial indicator changed the .003" prior to heading the other direction, and why the alignment mark procedure indicated nicely, but the dial indicator tells me my chain stretch is outside the acceptable limits. Can anyone give me so clarification as to whether I'm doing the procedure correctly?

I'd appreciate any help. Steve