Need Help with TTP223 Touch Sensor

Excellent tutorial; is that the fattest coil of solder he could find? Use what you have, I guess.

So… the 4VDC might not be enough to operate the undefined tool.

Features of your TTP223 Sensor;

Module Feature

1. Operating voltage: 2.0V – 5.5V.
2. Built-in status indicator light.
3. The module has an automatic calibration function. When no key is touched, the system will re-calibrate. The re-calibration cycle is approximately 4.0 seconds.
4. After power-on, there is a stable time of about 0.5 seconds required. During this period, do not touch the keys. At this time, all functions are prohibited.
5. The module interface is a standard 2.54mm pin header for input and output connection. The connection via DuPont wires is very convenient.
6. The PCB board has two fixed bolt holes, which can be fixed with screws.

The function you are looking for is set by the J1 and J2 positions.
The Touch switch is a means of sending a 2.0v to 5.5v signal to turn on / off a device, using this voltage or to activate-deactivate a device such as a relay.
Example, you want to use the TTP223 to operate a Relay using 12v to turn on a 110v / 220v circuit. It won't function as you only have 2.0 to 5.5v available.
So the missing information is the intended use of your TTP223 Switch.
But returning to your original question, it's answered in the Video from Rixter !

Thanks so much for the insights. It’s beginning to click for me now. A few follow-up questions if you don’t mind:

Does disabling the MOTB (auto-reset) risk sticking the output too long if there’s a missed tap? In other words, does it affect user experience more than it helps? For a tool project, what’s typically a better interface: momentary taps in toggle mode, or holding for activation in momentary mode (fast mode)? If I wanted continuous “ON until next tap” behavior, would people recommend using an alternative sensor like the MPR121 instead??

Really appreciate everyone's help, these clarifications are exactly what I needed to move forward on my end.

Your original query was the requirement to have a positive on-off mode. What do you mean by a "missed tap"? When you have a positive on - off mode the output is permantly turned on or off by touching the switch accordingly.
If you want to use the switch to turn on or off rapidly in sucession then you need to alter the sequence settings by removing / reworking the Soldering in J1 and J2.
It would help if you told us a bit more about your tool project as to what the switch is supposed to be doing. Are you just using it to turn something on or off for some length of time, like turn on a machine that will run for several minutes or hours or are you wanting to press it several times a minute ?