It's probably clear by now but just in case...here's my version:
I marked this up a while ago so please ignore anything not relevant. Or the whole thing...
The knife edge is slid right to block about half the LED and from then on stays put with just the stage tipping and moving forward and back. The LED is fixed and your eye goes right above it as close above as possible. I put some tape over the top of the LED so it wouldn't shine in my eye. The knife almost touches the front of the LED.
Some more details here if needed. Please scroll down to my longish post.