Yes, INDICATION is a Scrabble word!

Letter values in Scrabble US: I 1, N 1, D 2, I 1, C 3, A 1, T 1, I 1, O 1, N 1.

Is it a valid word?

INDICATION is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

something that serves to indicate or suggest
the act of indicating or pointing out by name
(medicine) a reason to prescribe a drug or perform a procedure
something (as a course of action) that is indicated as expedient or necessary
a datum about some physical state that is presented to a user by a meter or similar instrument

Also: meter reading.