It makes the signal directional and therefore stronger, like a satellite dish, except in reverse.
A satellite dish focuses the received signal from one direction to a single point at the lnb, this uses the same principles in reverse to focus the radiated signal from the wifi antenna and reflect it in one direction.
Good if you have a dead spot in your houses coverage, but only for one direction. Not so good if you need general stronger coverage, as you are better off getting a bigger antenna for the router instead.
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