The test cycle for seeing the powervalve servo high position is there so you don't have to rev the bike to 12000 rpm to check the power valve operation or settings.
The test cycle, if I remember right, occurs between around 2500 and 3000 rpm.

You need to be holding the revs constant at the test cycle point in the rev range. This will make the servo turn to the high position.
Low, or LO is when the valves shold be at their lowest position, or closed.

High, or HI is when the valves are open fully, at their highest position.
The HRC method of setting the valves requires the servo to be set to the Hi position.

Remember, to mark the servo you need to hold the revs constant at the point where the servo turns to Hi.

Start the engine and let it warm up. Then from idle, watch the powervalve pulley on the lower cylinder. The little pointer should be pointing forward or to the right. Slowly increase the revs of the engine to the test cycle point and you should see the little pointer move to the left. At this point the servo motor pointer should be pointing to Hi. That is where you mark the servo with a pencil line to get the exact High position.