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Help with setting mechanism on Elgin 0s pocket watch.

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I cleaned and repaired the mainspring and balance jewels on this pretty little Elgin 0s watch, put it all back together but I can’t seem to figure out the setting mechanism on this thing, maybe I got it right, but I’m not sure.
I put it back together exactly as I took it apart, and it works, but not as I expected.
The setting gears are always engaged, When I push the crown in, the gears move to the winding position, which seems backwards to me.
Heres some photos, first photo is the mechanism sitting at rest with the setting gears engaged, the second photo is with the crown depressed, and the gears moved into winding position.

Thanks for any insight on this. 



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The setting mechanism works exactly as suposed. If You put the movement in the case, everything will go normally. Of course, You will need the case to do that, as half of the setting mechanizm is part of the case. See this video:

OK, now I see that the movement is in a case. Well, but I doubt if it is a case that will do the job. Trhere should be special spring-collet  placed in the neck and the part of the stem that is in the case must have special shape that alows to be fixed by the collet in the both positions - winding/setting. The positios must be adjustable by screwing the collet in or out. The action of the stem and collet is shown on the video

Edited by nevenbekriev
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it's unfortunately one of the problems of American pocket watches with their sleeves. You can have a number of assortments like I have it work and even then you will never seemingly have the right one. This is where we then send the case down to the material house with they can look but the last time we didn't even get the right sleeve I think we swapped the case or something because without the sleeve the watch doesn't run.

So that's the downfall of pocket watches you can service the watch but you need to have a case fortunately cases depending upon the size can be available on eBay if you're lucky and if you had a bigger size like 12 16 or 18 that is much more common.

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