The principle works
Fluid coming from the tank (reservoir) A, will flow through the filter to the pump (B). If the condition of the flowing fluid is pretty much out of the pump, then part of the fluid supplied to the directional control valve (E), and partly flowed through a relief valve which is set to direct the flow to the tank. This will happen if the system has reached the maximum pressure.
Fluid flowing into Directional Control Valve (B) will flow from point P toward point A (conditions such as images).
The fluid that comes out of Directional Control Valve (point A) without control will go directly to the cylinder, the piston moves forward as a result (the piston rod moves out), contained fluid behind the piston will be pushed out through the pilot valve is set, after which the fluid out of the pilot valve leading to the Directional Control Valve (enter from point B) and headed to the tank (reservoir).
Flow Control Meter-out flow freely
As for step backward flow control meter out for the free flow of diagram types like the picture above.
The principle works the same as the actual control in the flow meter to flow freely, only difference lies in the pilot valve, if the meter-in flow control valve to control fluid entering the pilot, while the meter out flow control valve pilot control the free flow of the fluid flow leaving the cylinder.