It defines highs and lows using with 2 bars for confirming high/lows. So it has 2 bars lag.
It calculates the difference between with defined length (21 by default) of highs and of lows and uses it as alt SR level. This idea I took from synapticEx's indicator Nebula-Advanced-Dynamic-Support-Resistance.
Position enter is the breakout of SR, defined by fractals.
Position exit is: bar change in opposite to position direction > difference is of highs and of lows.