It's a reluctor type pickup.
The sensor is a coil with a magnet. When the rotor lobe moves past the sensor it affects the magnetic field provided by the magnet. This change in magnetic field induces a voltage on the coil.
The voltage (provided polarity is correct) will rise to a peak, then fall/drop/swing past zero to the negative peak, and then return to zero. The drop past zero is called the zero crossing on the falling edge and is the point which most circuits recognise as it is highly immune to noise.
Normally one end of the sensor (usually the negative) will be grounded internally in the ECU.
I would assume your controller would have an appropriate input for this type of signal (I don't know much about the aftermarket tranny controllers).
Mos.
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