When you check timing the car should be fully warmed up. When it's off the chart vertically it means the timing is off. If the car is warmed up and the timing is off the graph then check fuel temp.
VCDS should have label files that tell you a range. You still have to interpret the numbers somewhat. On a cold car, fuel temp should be ambient. On a warm car, fuel temp could be 60oC. Not sure what the needle lift sensor should ohm out at.