There is provided an optical encoder including an encoding medium, multiple photodiodes and a signal processing circuit. The encoding medium includes an index track. The index track includes a first index pattern and a second index pattern. The multiple photodiodes include a first index photodiode, a second index photodiode and a reference index photodiode for receiving modulated light from the first index pattern and the second index pattern. When the first index photodiode is aligned with the first index pattern and the second index photodiode is aligned with the second index pattern, the signal processing circuit outputs a triggering signal.