Yes, it's a trim gauge. I had this one in my boat, when I was running the 290 drive, but had to change it when switching to SX. The reason for the red diode to flicker during starting, is probably a bad connection. The gauge has nothing to do with the engine. When you lift the drive so much that the red diode comes on, you are out of the normal trim range and should only go idle speed. When it starts to flash, the outdrive is all the way up.