The Five Element Pagoda represents the five elements: earth, air, fire, water and wood.
If you notice the picture, there are five different levels on the pagoda. One must consult a Bagua map aligned to your house or room to know where to place various Feng Shui objects.
One place this should go is in the South West corner. This is the area of affliction called the Misfortune Star. Also place a metal Shiva here.