Yes, connect to one of the high speed inputs, if the input is capable of high speed counting the option will show up in the range settings. There’s also a table here on the forum showing which device and inputs can handle the high speed counters.
The wiring diagram should be in our data sheets but I see that its not, we will add that after the local holiday. I would guess the black is GND and red is 5V to 12VDC power, then yellow is the signal.
You can generate the 5V supply by setting one of the analog outputs to 0-10V range and set it to manaully on and type in 5V for the value. Each analog output is capable of sourcing 100ma for powering small sensors like the hall sensor in the water meter.