How should I recline my Graco car seat for proper positioning?

The infant restraint must be properly reclined according to the level indicator attached to the side of the seat. Check the indicator by looking straight at it—if only blue shows, the restraint is properly leveled. If any orange is showing, you need to adjust the recline. When using the base, pull down on the bottom of the foot to lower it or push down on the base to raise it. If orange still shows when the foot is extended, place a rolled towel under the foot until only blue shows. If using only the restraint, place a rolled towel under it if needed.

From the official Graco Adjust Straps Car Seat manual, page 38

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