If your grip is neutral and have arch you're wrist, it will be "shut."
If your grip is strong and your wrist is flat, it will be "shut."
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What type of grip do you employ?
Lastly, this seems like it is common sense but not always....make sure you are gripping the club in the right position in your hands. Nothing like gripping the club closed to begin with.
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I'm not a TGM or PGA certified Pro, but I did stay at a Holiday Inn Express last night
Might check your students application of extensor action. It is not a pushing out with the right hand, it is a below plane pull. If the palm of the right hand starts facing away from the plane due to an incorrect EA application instead of staying flat to the plane, you get a flat condition at the top.
Da Plane Boss, Da Plane.
In addition to extensor action, you may want to work on drills exagerating 'full roll' of the left forearm. Often the instinct to get 'shut' at the top comes from not knowing/trusting/executing full roll - at least for a swingers motion.
There are a lot of great aids that teach this feel. The figure 8 strap is really the best IMO (assuming a flat left wrist), but if you are not able to 'get' the roll, you might try something like the 'protater' or the 'pure swing', both of which do an excellent job of teaching the proper feels on the downswing.
Getting the feel of the roll will allow you to not 'try' to keep the face square going back, or to over arch, which will let you move away from that shut position
If you are a hitter however, you 'can' play quite well from that shut position.
Just don't confuse the hitter's move with the swingers (in general, angled hinge vs horizontal hinge - or to simplify, a 'no roll' feel vs a 'full roll' feel).
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"Support the On Plane Swinging Force in Balance"
"we have no friends, we have no enemies, we have only teachers"
Simplicity buffs, see 5-0, 1-L, 2-0 A and B 10-2-B, 4-D, 6B-1D, 6-B-3-0-1, 6-C-1, 6-E-2