Anyway, it could simply turn out to be a "ascending triangle" as shown below. However, that's only if it can remain above the rising trendline. Once the trendline is broken, then it's anything goes.
Which is better? It really all depends on your conviction. No doubt, you'll be entering much sooner at (1) than (2). I usually pick the lowest lows. However, see this new line that connects 3 lows?? 3 is more valid than 2 IMO.
As I said previously I look to the bar closes as well but didn't mention only needing two pivots for a complete trendline. I really fail to see the need for more. If a 3rd or 4th, etc pivot touches around it and reverses fine. But all that means is the trend is still in place because if not obviously price would continue falling through line.
Having 3 as opposed to 2 means the trendline is stronger and it will not be breached so easily. Anyway, there's no right way or wrong way in this game. Stick to whatever works for you best. If you're constantly milking money, that's the BEST approach. On the other hand, the dumbest approach is to enforce your views on the market. It should be the other way around. Let price and indicators guide you. Good luck
Closed, yesterday, below TL# 1, not #2. That will very, very likely happen with todays close. Here's an Hourly view from yesterday's break. Again TL#1 ahead of TL# 2. Seems the preferable way, rather than the conventional default way "they" teach it.