A magnetic sensor has magnetically sensitive element located at a side surface, instead of the bottom surface, of a bias magnet, the magnet being located adjacent a magnetic target wheel, wherein the bias magnet is magnetized parallel to the direction of motion of the teeth/slots of the target wheel. The output may be of a single or double frequency. Sampling of output slope can provide information regarding direction of movement of the target wheel. In a second embodiment the bias magnet is magnetized perpendicular to the movement.