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I think the terms "normally closed" (NC) and "normally open" (NO) are confusing when it comes to thermostats, as it all depends on what you mean by "normally". It depends on the relative temperatures.
If the actual temperature is below the set temperature, the switch will be in one direction; and if the actual temperature is higher than set, it will be in the other. But which is "normal"? From a heating perspective we want the switch to be closed if the actual temperature is lower than set and to open when set temperature is reached.
As for the OP's cylinder stat, terminals C and 1 are closed if the water temperature is too low; and terminals C and 2 are closed when the water reaches temperature.
I should say that I find tamz's diagrams confusing as it does not show the colour of the wires of the mid-position valve: I can work it out as I know how it is wired up. But a real beginner, like the OP will find it impossible.
If the actual temperature is below the set temperature, the switch will be in one direction; and if the actual temperature is higher than set, it will be in the other. But which is "normal"? From a heating perspective we want the switch to be closed if the actual temperature is lower than set and to open when set temperature is reached.
As for the OP's cylinder stat, terminals C and 1 are closed if the water temperature is too low; and terminals C and 2 are closed when the water reaches temperature.
I should say that I find tamz's diagrams confusing as it does not show the colour of the wires of the mid-position valve: I can work it out as I know how it is wired up. But a real beginner, like the OP will find it impossible.