From Infolytica Corporation

Variable reluctance sensors are used to measure position and speed of moving metal components. This sensor consists of a permanent magnet, a ferromagnetic pole piece, a pickup coil, and a rotating toothed wheel.

As the wheel rotates, the reluctance of the flux path through the coil changes, and the flux linkage through the coil changes, which results in a change in voltage that is measured by an external circuit.

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