The reader is a reflective sensor, it has an IR emitter and an IR receiver (photo transistor) in a single package. When you look closely at the face, you see two rectangular lenses, one is the IR emitter and the other is the IR receiver. The white stripes reflect back to the IR receiver and cause current to flow between the emitter and collector. The black stripes don't reflect much and very little current flows.
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The reason so much is said about the spacing to the flywheel tape can be gleaned from the following response chart, at around .75mm from the tape is the maximum sensitivity.
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