Good feedback. When they talked about nip to hip, this is where your arm swing should target from a cueing perspective. So your arms are at a 90 degree angle and then you go 45 degrees forward (nip) to 45 degrees backward (hip). They did not mean that you were supposed to touch these parts. So yes, you want your arm swing to be moving you forward (straight in front of you) not side to side (across your chest).
Hope this helps!