Level control valve

[Captain G]

Today, I replaced both actuators on my 95 E320 wagon. I had a very soft ride and thought that was the problem. Could anyone please tell me if hydraulic fluid should be moving through the reservior when the level valve is closed ???? (where the two holes line up on the lever and valve body) With the link to sway bar disconnected the car will go and down but there seems to be no position where the fluid will stop flowing. Could I need a new valve ???? If the fluid is moving through the reservoir all the time could this be the reason for the soft ride ????

Thanks for any help,
Captain G

1995 E320 Wagon 106K
1989 Porsche Carrera
1971 Porsche 914