A hydraulic gear shift mechanism for a bicycle having a positioning mechanism for controlling the motion of the piston of a master cylinder assembly is disclosed, wherein the master cylinder assembly is in communication with a slave cylinder for operation of a derailleur. The positioning mechanism preferably includes a pivot shaft spaced apart from the handlebar, a rotating member rotatable about the pivot shaft, a push mechanism for rotating the rotating member in a first direction and a return mechanism for rotating the rotating member in a second direction. In a more preferred embodiment of the invention, an adjuster piston is threadingly engaged with the master cylinder assembly for adjusting the initial position of the slave cylinder.