Ive used the BPB method (buddy power-braking) while I advance the timing 'til pinging many times. And if it starts cranking hard, back off a few degrees also. Haven't used a timing light since 1983. Eff-um.
This is the correct way to do it. I recently lost a balancer (had to change the crank). I had 6 use ones stacked up on the bench with the keyways aligned. One was like what the OP had. The rest of them varied by almost 2 inches. I picked the best looking one and used the positive stop method to find zero. It is nearly 5/8" away from the original zero. If you don't use this method, you will never know what your timing really is. my 2 ¢ .bjb
***uming you are looking at #1 cyl, then neither lifter should be down. both intake and exhaust lifters should up slightly up at TDC, the intake will be falling and exhaiust is rising.
You are describing TDC on the overlap, Not TDC related to spark timing at the top of compression stroke where both valves are closed
Yup, you're right, zero-crossover, thats where i check tdc and forgot there are two tdcs'. Just old habit and never thought about it.