It is important to note that the switch labelled "Altitude Hold" on the flight director panel only effects the flight director bars. With this switch in the up position (ON) the flight director bars will provide guidance for level flight. However, the autopilot can automatically capture an altitude by setting an altitude on the Altitude Preselector panel and climbing to that altitude in IAS or PITCH modes. Alternatively, an altitude can be immediately captured by engaging HT (Height) mode on mode selector panel.