The output of an incremental encoder provides information about the motion of the shaft, which typically is processed elsewhere into information such as position, speed, and distance. The output of an absolute encoder indicates the current shaft position, making it an angle transducer. There are two main types of rotary encoder: absolute and incremental. We will be displaying the encoded value both in clockwise and anti-clockwise directions in numbers with a sign.Ī rotary encoder, also called a shaft encoder, is an electro-mechanical device that converts the angular position or motion of a shaft or axle to analog or digital output signals. In this post, we will learn How to use Rotary Encoder with Arduino. 1 How to use Rotary Encoder with Arduino.