Yep, that's the theory. The inductive clamp on the spark plug triggers the strobe when it detects the high voltage passing to the plug. So, every time the engine is firing, the strobe lights up and makes the marks look like they are standing still, enabling you to see where the mark on the rotor ligns up to the static marks on the case. If its advanced, meaning the plug is firing early, you'll see the mark appear further before TDC. Hence you'll often see timing expressed in degrees, followed by BTDC or before top dead centre, which is the degree angle measured (in this case) clockwise away fromTDC.