In this paper, we introduce the implementation of high accurate level sensor system using the pulse wave type magnetostriction sensor. When a current pulse flows along the waveguide, the magnetic field also propagates towards the end of waveguide. When this magnetic field just passes the position of the magnet for level detection, the resultant magnetic field by these two magnetic fields makes a torsional reflected signal. This is used to calculate the time difference between a interrogation pulse wave and this torsional reflected signal. The key elements and characteristics were investigated to implement level sensor system based on this principle. We introduce a method to calculate the speed of ultrasonic reflected signal and how to make a model of sensing coil. In particular, we experiment with the characteristics of the torsional reflected signal according to the changes of the interrogation voltage and displacement. To make high accurate level sensor system, two methods were compared. One is to use the comparator and time counter, the other is STFT(Short Time FFT) which is capable of the time-frequency analysis.