Abstract: A method for determining a displacement of an object of an electrically conductive material. The method includes the step of using a transducer to establish an electromagnetic field for creating eddy currents in the object. This results in a first electrical signal representing the impedance of the transducer; the direction and magnitude of the electrical signal are represented by a first vector having first and second components. The first component is a second vector dependent on the characteristics of the transducer and on the distance between the transducer and the object. The second component depends on the characteristics of the transducer, the distance between the transducer and the object, and the object's characteristics (e.g., the electrical conductivity, permeability, and temperature). The first electrical signal represented by the first vector is then processed to generate a second electrical signal corresponding to a separate vector.