So it's a service that's running in background and listens for pointer's button to be pressed. Once it's happen it writes state to external file, where it's being read by the same script run by Generic Monitor XFCE4 plugin.
To get the script run
git clone http://git.speran.info/mouse_indicator.git mouse_indicator
You will want to edit the second line of
mouseIndicator.sh script to put there a path where the script is stored. And put any part of name of your pointer in the 3rd line. To see a list of avaliable pointers try
This line goes to startup settings:
sh -c "/$PATH/.bin/mouse_indicator/mouseIndicator.sh"
Next you will want to add a Generic Monitor panel button and configure it to run this script every second. So the command must look like