Problem Solved! I just realized the encoder uses NPN transistor inside.
I connected COM at the input to 0V, which was wrong. I connected it to 24V and it finally blinked!
Now my next problem is I don't know how to use INI(61), CTBL(63), and PRV(62) as high speed counter functions. Can anyone help explaining in a simple way what each function is for?
I am planning to make a PLC program that lights up a line of LEDs one by one for each encoder's revolution.
Thanks again!