How does this EMA cross filter? (help with decoding logic)

Beginner with indicators here: Thanks in advance for the guidance.

I'm trying to understand the logic of this EMA cross indicator (attached) as it seems to filter close crosses. Take a look at the pic below:

http://i118.photobucket.com/albums/o...terexample.gif

It's an EMA 5/4 cross (of close). You'll notice 2 red down arrows and no up arrow in between. There's a cross in there but the indi filtered it.... I took a look at the code and my guess is that it's got something do do with the avgrange and count stuff in there... if somebody could spell out the logic for this Luddite I'd be most appreciative.

I guess the other question is does that mean the indi repaints? I didn't notice any in a visual test I did with strategy tester but my 9 month old was dividing my attention at the time....

Again thanks for the help!

Figured it out: it contains a look forward function by one bar. I modded the indi to paint the arrow on the 3rd bar for confirmation now.... no -1 used.

but now my money printing indicator is not so fantastic. Don't you hate it when that happen

Have a good night all
Stuart

Hi stubish,
Thank you for your question. I made test with your 1H AUD/USD - 4/5 EMA.
It sees robust system.
This system (with another settings) i trade with 15-30 mitutesTF.
Sorry my english, when i was a child i must have learn russisch.
Good trades for all.