1) the diagram is clearly a 3-way valve; it is obvious from the
illustrated water path, the presence of an upper (vent) valve seat and
corresponding face on the piston, the valve body extends well beyond
the coil and terminates in a relieved and chamfered end typically used
to receive a flare fitting;
2) such valves may be used as 2-way valves, and when used as such, the
illustrated orientation is correct. this is the configuration used on
marzocco lineas (and perhaps others).
3) the illustrated orientation is opposite that required for the valve
to function as a normal 3-way brew valve, and as the valve shown is a
3-way, it would normally have a flow arrow indication molded or
stamped on the housing, and that arrow would, in this case, be
pointing against the flow, for the reasons stated above.