Rotary Encoder Wiring Diagram. Start by connecting v pin on the module to 5v on the arduino and gnd pin to ground. On one side of the switch there are three pins.
The two 1 2 pins are actually push buttons where 1 is grounded and 2 acts like a switch while on encoder side the corner pins 3 5 are connected to the arduino board whereas the middle pin of the encoder is grounded. Rotary encoder module is five pin device as shown in the m274 pinout. Three of them on encoder side while two on the click button side.
Conversion of single optical encoder to dual using digital pulse division method.
20 steps or cycles per revolution. Rotary encoder connections forward every event generated by rotary changes. I have searched diagrams for it and it seems like it is hooked up correctly. 20 steps or cycles per revolution.