When reading the MPU 6050 has accelerometer and gyro, I assumed it was linear acceleration, but now I second guess that. From this video https://www.youtube.com/watch?v=qmd6CVrlHOM it seems like they are using acceleration and gyro to make one rotation direction. I need to know what direction the mpu is moving, not just a rotational value. Is there a way to extract this information?
The MPU6050 has an accelerometer and a rate gyro (which tells you how fast it is rotating). The accelerometer will tell you which direction is down and in a motionless situation, that is all the information you have.
You'll probably want something like the MPU9150, it has a compass, which will give you the directional information you're asking for.
The MPU6050 has accelerometers in the x, y, and z axis. When placed on flat surface with no acceleration, you should get 0g (or whatever unit it uses, I cannot remember off the top of my head) in the x and Y directions, and 1g in the z axis. By continuously polling these values, you can find out the linear acceleration of each axis at a given moment in time.
What you saw is probably because the chip also has three Gyroscopes, for measuring rotational acceleration and speed. The chip can do both.