Power Course Instructor’s Response:
The third touch confirms the validity of the line. The first point is, for all intents and purposes, just a random spot on the chart. The second point can be connected to the first but means nothing relative to a trendline since the second point could be anywhere as well at this time. The third point, if it extends the line the first two created, now we have something that has been confirmed (by the third touch) and can be used for trading purposes.
See the chart below for a visual...
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