From this, I think the PLCD output is a sinusoidal signal and the TCM has to keep track the number of the sine cycles and phase to know the slave position. I think the computer resets the counter when the slave has no oil pressure, then counting the sine way cycles and phase. The engineers used the simple coil generated sine wave for more reliable in the oil enviroment instead of linear digital encoder. But why the connector needs to have 3 pins, when the sinewave only needs 2 pins output?
Btw, the slave rod must be moving fairly quick to generate a decent sinewave, as if it was pushed by our leg on the pedal slowly then the coil cannot generate the needed signal.
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