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I will use the "not closely guarded" signal when in a situation where a coach or player may think there should be closely-guarded count, as a way to communicate that yes... I am paying attention.
I'll also use it if I have a count, and then the dribbler moves away from the defender or the defender backs off.
I don't see a problem with using it as a means to communicate. The book doesn't say we should talk players out of trouble, but we do it anyway.
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