CAROUSEL ATC

hello guys
i am trying to implement the CARSOUSEL for my ATC , i am using ethercat stepper motor for the carsousel and i found there are multiple types of encoding which actual i dont understand the difference between them. i have 10 pockets and if there is an simillar configuration to mine that i could understand from it would be perfect!

How many sensors does your ATC have?
What do they do?

actually i dont have any sensors except tool length sensor , i am using servo motors with absolute encoders

ATC must have some sensors, be it index and pocket, or gray scale, or binary, or ....

yes i know that if i want to ue this component i will need sensors but what is the difference between them

It this a DIY ?

yes

Pictures?