New 71 240z owner.  Attempting to measure/set timing on a engine that has no vacuum advance.  Bought an Innova 5568 digital timing light.  Can see that the crankcase pulley has 5 notches, corresponding to 0 - 5 - 10 - 15 - 20 degrees of advance.  

Is it correct that if I want to set the timing at (for example) 10 BTDC that the timing cover pointer should line up with the 10 degree pulley notch (3rd notch) while the timing light display is showing 10 degrees?

Or,  when the pointer lines up with the 1st notch (TDC or 0 advance) and the timing light display shows 10 degrees, does that indicate 10 degrees of advance?

Thanks for reading this!

Probably either, depending which buttons you've pressed on your timing light.
It sounds like you've got a dial back timing light, which might have options to either read the ignition advance off the engine or the timing gun.
You'd probably need to read its instructions to be confident of doing it right.

Figured it out.  Yes, two ways to do it right.

1. set the timing light for 0 degrees and adjust distributor until the 10 degree notch on the pulley aligns with the timing cover pointer.

2. set the timing light for 10 degrees and adjust distributor until the 0 degree notch on the pulley aligns with the timing cover pointer.