Yeah, the issue is that there dots and triangles and squares by the various keyways in the crank sprocket, which are used to indicate how the timing is advanced, retarded, etc., by using that particular keyway. But those symbols by the keyways are to be ignored when 'aligning the dots'.
As you show it 're-timed' is on the money, as far as 'aligning the dots' goes; the hollow dot on the valley between teeth on the crank sprocket is lined up right below the cam sprocket dot. As has been said, that is where you start and then you check timing with the degree wheel to make sure it is very close to the proper ICL (and to make adjustments if it is not). You also make sure that some goofed up marking or keyway machining is not causing more timing havoc ; that is rare but not unknown.
