Here are the four basic positions of the winding crown for most Rolex Oysters:
Position # 1
The crown is screwed into the Oyster case. In this position, the watch is pressure proof end ready to be worn.
Position # 2
The crown is unscrewed so that it is just a free of the screw threads. In mechanical models. the watch can now be hand-wound. (In quartz models, this is a neutral position).
Position # 3
Pull the crown out to the first notch. The watch continues to run normally. When the crown is turned counterclockwise (as it to unscrew it) the date will change rapidly.
Position # 4
Pull the crown out to the last notch st stop the watch. Adjustments can be made to the position of the hands (when switching time zones for example). Pushing the crown back in then restarts the watch.