Two types of deformations can occur on the cable during the monitoring of the rock displacement by the time domain reflectometry. One is the impedance model for tensile deformation, and the other is the capacitance model for the shear deformation. The former gives a response signal with a gradual change in the amplitude of the reflected voltage, meanwhile the latter produces a signal with a blunted spike. The resolution of the TDR can be improved to 0.125% using calibration crimps on the cable of 60 meters long. It is recommended that the diameter of the cable should be 18 mm at least in order to induce a better reflected pulse without any open-circuit. The actual TDR technique cannot characterize the type and the magnitude of rock displacement quantitatively. Systematic investigation of the TDR parameters, such as the exact of cable diameter, cable length, number of crimps, combination of shearing and extension, and environment of the TDR equipment, will be able to improve the resolution to 0.01 mm.