This lighting technique is very similar to the Flood lighting technique, which mainly used to illuminate a semi-large area, mostly indoor but could be adapt to use outdoor as well. But because of its lower power rating LED and low heat dissipation, it is a popular technique for indoor lighting.
Typically LED Wall Washers are used for this type of application since the ability to control colors, patterns and intensity is virtually limitless. It could easily be controlled via a stand alone controller or connect to a PC for real-time color manipulation.