Step 1: A magnetic speed sensor is...
This sensor only detects movement of ferrus objects near the sensor so is typically used for speed sensing (for example a wheel sensor in an ABS system) usually in combination with a toothed steel wheel.
They are very rugged sensors and are not affected by dirt and have a very high signal output making them less sensitive to noise (ideal for automotive applications)
For example the sensor I have made will generate a sine wave of 50Vp-p into a 1Kohm load (that is a peak of 50mV)
Step 2: You will need the following...
2. A relay (I used a miniature 12V relay, but others should work)
3. A broken mobile phone
4. A bit of 2 core wire (twisted pair will help with noise immunity, but is not necessary)
Step 3: Get the magnet
Step 4: Get the coil
Step 5: Attach the magnet
Make sure the magnet is at the same end as the connections for the coil