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How to turn an oval tool handle

Rough turn the cylinder.
Use two off center Centers about a 1/2" from the true center.

The best centers to use for this are cup centers with a point for the drive center and the tailstock center.
On each center I like to do a pull cut with a side ground gouge.

When both sides are turned for a tools handle you can sand on the true center since rounding the sharp corner is desirable.

Also for a tool handle you can do a modified oval. Use one of the offset centers on the tailstock sides and just turn one face. This gives a sort of flat on one side and the normal curve in the other.
 
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