Here are Cisco's definitions.
The physical layer must generate the electrical, optical, or wireless signals that represent the "1" and "0" on the media. The method of representing the bits is called the signaling method.
Encoding or line encoding is a method of converting a stream of data bits into a predefined "code”. Codes are groupings of bits used to provide a predictable pattern that can be recognized by both the sender and the received. In the case of networking, encoding is a pattern of voltage or current used to represent bits; the 0s and 1s.
I don't understand the difference between these two. When I describe line encoding in my own words, I would say encoding means putting the 1's and 0's in a certain pattern, so both nodes can understand that pattern. The encoding-protocol used defines that pattern. Is this correct?
I do not understand the definition of signaling... These two terms are explained on the same page in my cisco book, but to me signaling seems very similar to encoding. I can't differentiate the two.