CGMythology's Sketchbook

[RottenPocket]

I don't think the above Green-lined placement of the edge of the fabric is a solution - it flattens the pose, making the arm appear to bend aside, rather than in front of the character. But, it does look unbalanced as there is some noise created by the folds in the fabric - they all swoop downwards indicating they are handing from a point, rather than curving around the form of the arms. It confuses the form of the arms beneath.