I think Merle had the end of the handle (the loop) fairly high.
Merle, when he used it, liked to make it do what it was designed to do, meaning he would move the handle to get both sides of the note and made sure you knew he was doing it.
Thinking on it now, I've noticed that the P-90 pickups on his Super 400's have an unusually gnarly tone when he plays it near the fingerboard. I think he knew this as a 'sweet spot' and when he made his first long handle he put the ring where it kept his hand right over that sweet spot.
I made a handle like that once using 1/4" rod from a hardware store and the Walkin the Strings album cover. I already had the stationary bracket. Used it for less time than it took me to make the handle. I couldn't see the advantage of such a long handle and still don't. Chet's handle is much more to my liking. Having a liong handle like that just because Merle had his that way wasn't motive enough for me.
But Merle sure did like to use the Bigsby when he picked up near the fingerbaord.
And that ring is right there.
That's how it looks to me.
PS. What you guys who have stationary brackets and are flummoxed by them this is what you should do.
Get a piece of 1/4" rod (welding rod would work) and make your own. You want it away from the bridge enough so you can do a full palm mute if yu want to. Then you see to it the tip just touchess the main bend in your little finger when your right hand is in 'Chet Position'.
Here's a shot of one of mine before I got the Chet handlie. In my case the tip on mine and the tip on the Chet handle were the so close I had minimal adjustment time.
