The Xara Trompe L'Oeil Room  Page 2
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Using the Ellipse Tool, hold down the Ctrl key and drag a circle with a 120 pixel width. (I made the sign white with blue outlines to simplify the image. You don't need to do this).

NOTE: The Ctrl key is used to constrain various tools to the settings in the General tabbed section in the Page Options menu. When used with ellipses and rectangles, the Ctrl key constrains these to circles and squares.

Select the circle and from the Arrange pull down menu select Convert to Editable Objects. (Note that is editable not edible). This disables the circle's context sensitive options and enables individual point editing.

With the circle selected, select the Shape Editor Tool (the squiggly line icon) and drag the bottom center edit point downwards a bit as shown.

 

Click the bottom center edit point with the Shape Editor Tool to enable the Bezier control handles. Drag each control handle (the black boxes at the end of the red lines) in and upwards as shown.

NOTE: Edit points can have Smooth or Cusp joins. Cusp joins (such as these) can be used for angles less than 90 degrees. Smooth joins have angles greater than 90 degrees, or what we call a curve.