You put the capo on the 3rd fret and then tap on the 1st fret. There should be a minute amount of space between the string and the top of the fret. You can hear it make a tapping noise, if it's quiet. Once you're used to it, you can just feel it.
So, you're basically using the capo in reverse. You're concerned with what's between the nut and capo, not the capo and the bridge.
Yeah, I was thinking you're testing between the capo and the nut, but you dont just pick the string?
Nope. You just measure the distance between the top of the 1st fret and the bottom of the string. It should be a few thousands of an inch or more, but not too much. They should be pretty close to touching. A thin guitar pick should be held in place if you have the capo in position and stick the pick between the fret and the string. You do it over the fret wire itself.
I don't think my ruler goes to thousandths
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