Wizard
I think the rule is quite clear - you just quoted the first line of it. The rule states (with my emphasis):
Extend shoulders, hips, knees or extend the arms or elbows fully or partially in a position other than vertical so that the freedom of movement of an opponent is hindered when contact with the arms or elbows occurs.
Bend his/her body in an abnormal position to hold or displace an opponent.
No displacement, no holding, no hindering = no foul.
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