It is a huge + in the middle of the screen, the middle being you. Theres also little dashes in the plus sighn. Just tap it, and if there is an item nearby, it will tell you.
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The dowsing machine is a poketech app which scans the ground for hidden items. It is app no.7.
The Dowsing Machine Poketch App can be obtained once you beat snowpoint City completely. After that, prof.rowan will come on a hover craft where they finaly destroy team galactic and they pick what app to get either the Dowsing Machine App or the water tracker app.
dawn will also give you the dowsing machine
its a poketch app.
You can get one in Solaceon Ruins with the dowsing machine app on the poketech.