close, BUTT... there are 2 1/8 NPT ports and 6 1/4 NPT ports. The 1/4npt ports, labeled 1 and 2 should go to the bags, the 1/8NPT should be plugged, unless you are running pressure sensors of some sort ( IDK why you'd do that )
The top IN port, based on mounting, should go to a check valve then to the air tank. The bottom IN port should be plugged.
The top EXH port should be plugged and the bottom should have a filter on it.
The valve can be mounted in any position, BUTT, the preferred orientation is connector up, or down, so the exhaust blows any moisture / debris out onto the ground
despite what I said above 1/8 is way too small and WILL restrict your air flow. I'd run 1/4 inch lines, and thats what fittings are supplied with the valves.
Yes, I know how I spelled butt