Hi, I had the same exact question like you have when I first got information about how alexa toolbar can increase your traffic rank. In this case, maybe you can get more detail information when you read this.
Increase Alexa Ranking by Alexa Toolbar Visitors
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Alexa’s traffic rankings are based on the usage patterns of Alexa Toolbar users over a rolling 3 month period. A site’s ranking is based on a combined measure of reach and pageviews. Reach is determined by the number of unique Alexa users who visit a site on a given day. Pageviews are the total number of Alexa user URL requests for a site. However, multiple requests for the same URL on the same day by the same user are counted as a single pageview. The site with the highest combination of users and pageviews is ranked #1.
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Not sure how effective and true it is but I'm experimenting with it right now
Some people who tried and experienced true effect:
How To Increase Alexa Rank