It's the Harley version of a Gear Indicator Light!
You wasn't in Gear, and BANG! now you is!

 

what i have found is like some of the others have stated,keeping the clutch adjusted properly,an chain (if applicable),an some good oil in there,an changed when its time seems to greatly reduce the clunk on mine.

 

+1
If you are hearing a loud clanging or clunk with a cold engine/clutch/transmission then your clutch plates are sticking together a little to much.
You can prove this out by starting the engine in gear with the clutch pull in of course, it will drag a little and then break the plates free.
Change the primary oil (warm engine/primary) to a good quality (thin) synthetic Amsoil - Mobil etc..
Do the clutch adjustment on a cold engine.

Like others have said it should click into gear, you will amaze your Harley friends when your transmission clicks while they CLUNK.

 

This has been a great learning thread!! I've always wondered why the bike moved with the clutch pulled in, while starting in gear. I bought synth primary and transmission fluids a couple of weeks ago; picked up gasket kit last wkend; I know what I'm doing tonight!! Thank you to everyone who puts forth the effort to enlighten the rest of us I have a service manual, but there is so much more to learn - which I enjoy equally with riding; part of becoming one with your machine - Cheers, Kevin.

 

Wow, ok so this is good information. I think I will do that in about 400 miles, after my 1,000 mile service. Thanks!

 

same crazy-loud shifts for me.... and, if I come to a stop, and don't downshift through my gears... I can't get into 1st to take off, w/o letting the clutch out a bit, until each gear "releases".... not sure how to explain that..

is this also something that changing the fluids can help?

 

My 11 Fatboy shifts exactly the same way. It doesn't clunk badly though, just like shifting normally through the gears. The soft shift it does into first sometimes is what made me wonder. Since yours does the same thing, I'm going to guess it's normal.

 

adjust your clutch. super easy to do. like i stated before, pull on the cable where it meets the lever. you should be able to pull about the width of a nickel (about 1/8") if you can pull more than that you are out of adjustment. find the adjustment on your cable. if stock it will be in front of the frame covered with a rubber boot. pull the boot down and you will see the adjustment sleeve and nuts. break the nut loose to free the adjustment sleeve to turn. back the sleeve out (make longer) to tighten the clutch gap at the lever or bring it in(shorter) to loosen the clutch. once you get the adjustment were you want it, simply tighten the nut against the sleeve and put the rubber boot back in place. this is something that can be done in 5 minutes with 2 wrenches. i check mine prettty regular. takes 2 seconds to check and keeps bike shifting smoothly

 

I am assuming you mean, if I have more than 1/8" before the clutch engages, right?
I have adjusted the clutch before, and the dealership has also, but it has always done this.

 

no, with the bike just sitting there you just grab the cable and pull it away from the clutch lever clamp, where the cable goes in and attaches to the lever. there is a wider chrome piece on the cable and a narrow piece that goes inside clamp on the handlebars. the larger diameter chrome piece should pull 1/8" away from the clutch lever clamp