I lined up like pic 1 for about 5 years ! Started lining up like pic 2 the last couple of years and it made a noticable improvement in my accuracy....especially with rights and lefts ......because I use it similar to a level ! If the pin guard is too far right / left/up/down I can tell ! If I center on the pin and pay no attention to the guard ......and I'm torquing.....I usually hit right or left !

Anywhoo........like the second picture !!