Document resolution parameter

components/sensor/rotary_encoder.rst

@@ -47,6 +47,13 @@ Configuration variables:
 - **pin_reset** (*Optional*, :ref:`Pin Schema <config-pin_schema>`):
   An optional pin that resets the step value. This is useful with rotary encoders that have have a
   third pin. Defaults to no reset pin.
+- **resolution** (*Optional*, string): The resolution of the sensor, this controls how many
+  pulses are generated by one step:
+
+    - 1 (default)
+    - 2
+    - 4
+
 - **id** (*Optional*, :ref:`config-id`): Manually specify the ID used for code generation.
 - All other options from :ref:`Sensor <config-sensor>`.