An incremental encoder is a linear or rotary electromechanical device that has two output signals, A and B, which issue pulses when the device is moved. Together, the A and B signals indicate both the occurrence of and direction of movement. Many incremental encoders have an additional output signal, typically designated index or Z, which indicates the encoder is located at a particular reference position. Also, some encoders provide a status output (typically designated alarm) that indicates internal fault conditions such as a bearing failure or sensor malfunction.