Consider the curve $y = 2x^2$.
The derivative at any point on the curve is $$ \frac{dy}{dx} = 4x. $$
since, $f\ '\ ( x)$ at a point $(x)$ gives the tangent vector, we get $\overrightarrow{t} = \frac{dy}{dx}$
therefore the unit vector, $\hat{t} = \frac{\overrightarrow{t}}{\| \overrightarrow{t} \|}$ = $\frac{\frac{dy}{dx}}{\|\frac{dy}{dx}\|} = \frac{4x}{\|4x\|}$
therefore, for $x = 4$, $\hat{t} = 1$
while for $x = -2$, $\hat{t} = -1$
and, for $x = 0$, $\hat{t} = 0$
QUESTION 1:
is my assumption that a derivative divided by its modulus value give a unit vector correct?
QUESTION 2:
If yes, then in which direction is the unit vector pointing? if false, then, what does $\frac{dy}{\|\frac{dy}{dx}\|}$ represent?
Thinking of f(x) as a vector in the vector field is okay and the direction can be chosen as per your convenience (since it's one dimensional, or, it assigns just one value to every point in xy plane, that being -1/0/1). Since it tells the sign of derivative and thus, the tendency of change in the function's output, it could be that it points in the positive y direction for +1 and opposite for - 1, it being a zero vector for 0, since it's indicating of the corresponding tendency of the function (here the dimension being the y axis).
Update : as the vector z is defined, it's only assigned a magnitude. Thus it could be any vector with magnitude associated with that point in the xy plane. Therefore, thinking of the unit vector z does not make much sense, or, it's not defined well. You could assign a particular direction to it in the definition or think of gradient vector but it would mean the unit vector signifies the direction where there's maximum change in function (towards x axis)