/*
  Button
 
 Turns on and off a light emitting diode(LED) connected to digital  
 pin 13, when pressing a pushbutton attached to pin 2. 
 
 
 The circuit:
 * LED attached from pin 13 to ground 
 * pushbutton attached to pin 2 from +5V
 * 10K resistor attached to pin 2 from ground
 
 * Note: on most Arduinos there is already an LED on the board
 attached to pin 13.
 
 
 created 2005
 by DojoDave <http://www.0j0.org>
 modified 30 Aug 2011
 by Tom Igoe
 
 This example code is in the public domain.
 
 http://www.arduino.cc/en/Tutorial/Button
 */

// constants won't change. They're used here to 
// set pin numbers:
const int buttonPin = 2;     // the number of the pushbutton pin
const int ledPin =  13;      // the number of the LED pin

// variables will change:
int buttonState = 0;         // variable for reading the pushbutton status

void setup() {
  // initialize the LED pin as an output:
  pinMode(ledPin, OUTPUT);      
  // initialize the pushbutton pin as an input:
  pinMode(buttonPin, INPUT);     
}

void loop(){
  // read the state of the pushbutton value:
  buttonState = digitalRead(buttonPin);

  // check if the pushbutton is pressed.
  // if it is, the buttonState is HIGH:
  if (buttonState == HIGH) {     
    // turn LED on:    
    digitalWrite(ledPin, HIGH);  
  } 
  else {
    // turn LED off:
    digitalWrite(ledPin, LOW); 
  }
}

/*
 Sample sketch to show pulses from reed switch on wheel to determine if the wheel turns CW or CCW
 three magnets on wheel at 1/6ths - two together and one two away
 
 NOTE: this version gives a good result and definitely discriminates between forward and backward
 now to do the math and get it to report properly!
 
 */

const int buttonPin = 2;     // the number of the pushbutton pin
const int ledPin =  13;      // the number of the LED pin

// variables will change:
int buttonState = 0;         // variable for reading the pushbutton status
int minusCount = 0;
int plusCount = 0;
int firstPlusFlag =0;
int firstMinusFlag = 0;
int countValue[6];
int y=0;
void setup() {
  Serial.begin(115200);
  // initialize the LED pin as an output:
  pinMode(ledPin, OUTPUT);      
  // initialize the pushbutton pin as an input:
  pinMode(buttonPin, INPUT);     
  Serial.println("forward / backward wheel test - 3-29-15");
}

void loop(){
  buttonState = digitalRead(buttonPin);
  if (buttonState == HIGH) {     
    plusCount = plusCount + 1;
    firstMinusFlag=0;
    if (minusCount !=0)    {
      Serial.print("cnt ");
      Serial.println(minusCount); 
      countValue[y]=minusCount;
      y=y+1;
    }
    minusCount = 0;
    digitalWrite(ledPin, HIGH);  
  } 
  else {
    minusCount = minusCount + 1;
    plusCount = 0;
    digitalWrite(ledPin, LOW); 
  }

  if (y==6){
    int big=0;
    for(int y=0;y<6;y++){
      Serial.print(countValue[y]);
      Serial.print("  ");
      if (countValue[y] >= big){
        big = countValue[y];

      }
     //// countValue[y]=0;
    }
    Serial.println("");    
    Serial.print("big = ");
    Serial.println(big);
    big=0;
    y=0;

    // }
  }
}

Working Code - lights Red LED based on direction of travel - the wheel has to turn a bit more than one revolution
to detect the direction of travel.  Version  Wheel_CWorCCW_v_2_0_Working

/*
 Sample sketch to show pulses from reed switch on wheel to determine if the wheel turns CW or CCW
 three magnets on wheel at 1/6ths - two together and one two away
 
 */

const int buttonPin = 2;     // the number of the pushbutton pin
const int ledPin =  13;      // the number of the LED pin
const int ledDirection =  8;
const int ledDirection2 =  7;
// variables will change:
int buttonState = 0;         // variable for reading the pushbutton status
long minusCount = 0;
int firstPlusFlag =0;
int firstMinusFlag = 0;
long countValue[12];
long maxCountValuePosition=0;
long maxCountValuePosition2=0;
int direction =0;
long big=0;
int y=0;
unsigned long time;
void setup() {
  Serial.begin(9600);
  // initialize the LED pin as an output:
  pinMode(ledPin, OUTPUT);      
  pinMode(ledDirection, OUTPUT); 
  pinMode(ledDirection2, OUTPUT); 

  // initialize the pushbutton pin as an input:
  pinMode(buttonPin, INPUT);     
  Serial.println("forward / backward wheel test V1.4x  - 3-30-15");
  time = millis();
}

void loop(){
  if(millis()-time >= 5000){  // if 5 seconds passes without a movement clear both LEDs
    digitalWrite(ledDirection, LOW);
    digitalWrite(ledDirection2, LOW);
  }
  buttonState = digitalRead(buttonPin);
  if (buttonState == HIGH) {     
    firstMinusFlag=0;
    if (minusCount !=0)    {
      Serial.print("cnt ");
      Serial.print(y);
      Serial.print(" = ");
      Serial.print (minusCount); 
      Serial.print(" ");
      countValue[y]=minusCount;
      if (countValue[y] >= big){
        big = countValue[y];
        maxCountValuePosition=y;
      }
      y=y+1;
    }
    minusCount = 0;
    digitalWrite(ledPin, HIGH); 
    time=millis(); 
  } 
  else {
    minusCount = minusCount + 1;

    digitalWrite(ledPin, LOW); 
  }
  if (y==3){
    Serial.println("");
    for (int x=0;x<3;x++){
      Serial.print(x);
      Serial.print("  ");
      Serial.println(countValue[x]); 
    }
    Serial.println("");
    Serial.print("big = ");    
    Serial.print(big); 
    Serial.print("  pos = ");    
    Serial.print(maxCountValuePosition);    
    Serial.print("  ");
    big=0;
    y=0;
    countValue[3]=countValue[0];
    direction = (countValue[maxCountValuePosition]/countValue[maxCountValuePosition+1]);
    Serial.print("  Ratio = ");
    Serial.println(direction);
    if (direction >=4 ){
      digitalWrite(ledDirection, HIGH);
      digitalWrite(ledDirection2, LOW);

    }
    else{
      digitalWrite(ledDirection, LOW);
      digitalWrite(ledDirection2, HIGH);

    }
  }
}