The Color Guard are not signallers. The two regimental flags were not used for signalling but at as a rallying point for the regiment, and also a matter of honor to keep them flying. They also allowed the generals to see which regiments were where, especially on a battlefield with otherwise poor viisbility when the shooting started. Officers carried the flags - the national flag (Queens/Kings color - (national flag) in Britain) - and the regimental flag. Up to 8 NCOs, usually corporals, were the color guard - a very prestigious position. Their job was to protect those colors, with their lives, if necessary, as loss of the colors was a regimental disgrace.
The position was in the center of the front line, line companies either side IOW - in the thick of the fighting. The number of line companies would differ with the regimental strength in the field.
The Signal Corps is a separate organisation formed to pass light or flag signals - visual signalling - to higher formation army commanders in the field. They were specialists. During the Civil War, this was often augmented with line telegraph equipment whenever possible - no, not telephone, morse code transmissions as on the railroad telegraph, as well as the passage of written messages. They were not in the line, as such (In the line communications were by regimental drum or bugle).
It is possible that he joined as an infantryman but was seconded to the Signal Corps either because he had worked for the railroad (telegraph) and not told anyone (or wasn't asked!) or was used as a messenger, mounted or foot, when the need arose.
*It was also a way of using otherwise fit men suffering from 'battle fatigue' (PTSD), without disgrace or discharging them.