The auto-scaling mechanism consists of 2 parts
one is the auto-scaling-group that holds the AMI to launch and the min/max/current amount of servers to run. An auto-scaling-group has scaling polices which can be triggered, the actions can for example - add a server / remove a server / add 20% of current servers.
the second part is CloudWatch which monitors the servers in your auto-scaling-group and can trigger a scaling policy, for example if all servers are above 60% CPU for z amount of time trigger policy X. or if network in to servers for x amount of time is above X trigger policy Y.
once a policy is triggered there is a grace period before checking the metrics again.
In your case i would suggest creating 2 CloudWatch metrics according to CPU and Network IN.
And yes
auto scaling group add more EC2 instances until CPU usage goes below 60%