Setting up for the exchange. The relief rider has dropped down below the blue line and has his left hand palm out on his left hip. The opposing rider is moving up above the relief rider.
The exiting rider has his left hand next to the stem while initiating the hand sling. This is so the pull of the exchange doesn't impact steering. The relief rider has his right hand on the drops. The opposing rider is moving high as if to pass the relieving rider.
	Maximum arm extension. Note the opposing rider is well positioned to drop in behind the relief rider once he accelerates due to the exchange. Lots of people hold the handlebar near the stem while on the relief end of the exchange. Since both the relief rider's hands are forward he isn't pulling with his right arm. Keeping the hand on the drops leaves you ready to ride as soon as the exchange is complete. The exiting rider can put more effort into the exchange and also maintain better steering control through balancing the force of the exchange by holding the handlebars near the stem.
The exchange has taken place. If done correctly the relief rider will accelerate rapidly.
	That's why the opposing rider needs to be above and forward of the exchanging team. That way they can easily drop in behind the relief rider as they accelerate. Holding a wheel from directly behind the relief rider in a properly done madison throw is much harder. The exiting rider will be cutting a lot of speed in the exchange, don't space out and ride there.
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Additional notes from Doug McLerran - Roger Young used to (maybe still does) teach a method that is a lot more compact and works great in a crowded spot: the relief rider holds left hand in back, when the fast rider approaches they grab the hand but instead of extending their right arm back before throwing, they hold their right elbow tight to their side and hold their forearm pointing straight forward. The relief rider then does a kind of triceps extension, pushing off this "stationary" hand of the fast rider. If the riders are close side-by-side and both keep the elbows in to their sides, the motion is surprisingly efficient and powerful.

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