I am a total noob so do NOT take this as me correcting you but I am curious about how exactly #2 was described when you were taught that.
My point being...I was taught that you breath in, exhale, and then it was mentioned specifically that the process is not "holding your breath" but rather prolonging the pause at the end of the exhale prior to the inhale. When you "hold your breath" many people hear that and think of the process of closing the windpipe at the "throatal" area (to quote Cliffy Claven.) It is a pause in breathing rather than holding your breath.
Keep in mind I am saying what I was told not what I think you should do.
Being a noob I am not sure if this is a different technique or just a different way to explain what you are saying. Your thoughts.
Nope your exactly correct, it is more a pause before the next breath. I said hold out of laziness. Tough crowd.