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Prescaler Value for the Timer in Encoder mode

Question asked by Neo M on Sep 29, 2016
I am using TIM4 of STM32F767 in Encoder mode. The period is set to 1000. The CNT value changes as follows: 0->1000->1->1000->0 and so on. On monitoring the DIR bit, I found that it keeps oscillating between 0 and 1. Can someone help me with figuring out whats wrong?

UPDATE: The DIR bit oscillates irrespective of prescaler value. The CNT Value sometimes changes as 2->3->2->1. It depends on the value of DIR at that time. The DIR always goes 1-1-0-0-1-1-0-0...and so on