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[General] Analog Output interfacing with 5v microcontroller

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Analog output is not connected to a microcontroller in your schematic. So most likely you don't get a current reading.
 

But How to read with Multimeter? Because, If I got the analog output reading on multimeter then I will connect those wires to the microcontroller. What do you think?

Do you think I need to 500-ohm resistor to get 4-20mA current output?
 

Very clearly, the analog output must be loaded with a resistor <= 500 ohm to get correct measurements. Industry standard 4-20 mA signal converters have between 50 and 500 ohm input resistance.
 
So, I need to connect a 500-ohm resistor between pin 6 and 7 to get 4-20mA current output? Without resistor, I tried earlier it showing only 4mA. But I will try with <=500 ohm resistor
 

Thanks FvM,

It help when I connected a 330ohm resister between pin 6 and 8 it shows the current varies between 0.0mA -1.36 mA. Now how to transfer this current to Arduino Uno? How does Arduino UNO will know there is a change in current when the object is moving? Please leave your comment below.
 

Isn't there a voltage drop across the resistor ? Use MCP6002 Rail to Rail Op Amp and amplify the voltage drop across the resistor to 0 to 5V range and feed it to Arduino ADC input pin.
 

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