It suggest points which you shuld set your stop loss there.but first you chnge the setting to find your best .the period 22 and coeficient more than 2 is suggested by Ehler (this ind. is made by him). I supposed this setting 22,3 for 1 huor period . when the line is upper than price you may trade in short mode and set your stop upper than(or equal)the ind. price and vice versa.