That is not an ignition sensor. It is the cam position sensor. It sits where ford used to put the distributor,
Ignition is crankshaft sensor controlled.
The cam sensor ( your question) works more like a distributor for the fuel injectors, so it is a fuel timing distributor, so to speak.
It is extremely crucial to get it set dead on. You must have the #1 cylinder at Top Dead Center of the compression stroke. You cannot set it with the #1 cylinder at TDC of the exhaust stroke. Forgive my reminder, but some people don't grasp the concept of a piston coming to Top Dead Center 2 times in one engine cycle. If you have a helper turn the engine ( with all spark plugs out) and hold your thumb over the number 1 plug hole, you will feel the pressure of the piston compressing air, if it is on the compression stroke.You will still feel some force on the exhaust stroke also, so using a compression gauge might help.
now you should be able to see the timing marks, line it up to 10 advanced, then go back to 0 (use a piston stop if you have one to see how close the mark is to actual TDC)
Going to 10 then back to 0 will make up for any timing chain slack.
You must use the tool on top of the sensor housing. drop it in facing forward as much as possible for clean connector reach. The actual "look" of the position does not matter at this point because the engine is at TDC, and you have the "fuel ditributor" locked where it should be for TDC.
Think of it like having a distributor a tooth or 2 off, move all the spark wires to the right one slot and it fixes that. If you were able to lock the engine to TDC, and lock the ditributor pointing to number 1, it would not matter which direction the ditributor face as lon as you place the #1 spark plug wire on the #1 ditributor hole.
Others have reported luck getting it "close" , and it might work "ok" this way, but you and I both know for performance reasons, and at high RPM's ( which is what the camshaft is allowing) you need the fuel spray to be dead on time.
Close enough will result in either a bad combustion or lean condition. You could very likely burn a piston if it is not set correctly.
