We do a LOT of work with similar devices, and manufacture various equipment that connects to them - they are pretty well universally either open-collector (or open-source), or a simple reed relay.
So, as you've drawn the connections - you need a pull-up to a +ve supply (we normally use 3.3V, 5V, or non-rechargeable Lithium batteries at 3.6V) - the actual voltage isn't usually of any importance. We also normally use two x 22K resistors in series as a pull-up - but it's not usually supplying power.
The issue with this one is that it requires power, and that it has LED's (using more power) - I eventually found a datasheet, but it's incredibly poorly written, and not at all clear what's required.
But from what I can gather, there's a 50 ohm resistor in series with the collector/source (commonly 100 ohm is used - this could be lower though because of the added power requirement, and doesn't really matter).
Also it lists the voltage required as 7.5V to 36V - which I surmise suggests it's intended to connect to a PLC, which are normally 24V - with a 12V supply I'd suggest trying a 1K as rjenkinsgb suggested, and see what happens?.
You say you're not seeing pulses?, but what DC voltage is on the output - is it 0V, 12V, or somewhere in between?.