|  | 7.1 | Basics of Token Ring
| 7.1.4 | Token Ring signaling

Signal encoding is a way of combining both clock and data information into a stream of signals that is sent over a medium. Manchester encoding combines data and clock into bit symbols, which are split into two halves, the polarity of the second half always being the reverse of the first half. Remember that the Manchester encoding results in 0 being encoded as a high-to-low transition and 1 being encoded as a low-to-high transition. Because both 0's and 1's result in a transition to the signal, the clock can be effectively recovered at the receiver.
The 4/16 Mbps Token-Ring networks use differential Manchester encoding (a variation on Manchester encoding). Token-Ring uses the differential Manchester encoding method to encode clock and data bit information into bit symbols. A 1 bit is represented by no polarity change at the start of the bit time and a 0 bit is represented by a polarity change at the start of the bit time.