  Given a valued field $(K,v)$ and a pseudo monotone sequence $E$ in $(K,v)$,
one has an induced valuation $v_E$ extending $v$ to $K(X)$. After fixing an
extension of $v_E$ to a fixed algebraic closure $\overline{K(X)}$ of $K(X)$, we
show that the implicit constant field of the extension $(K(X)|K,v_E)$ is simply
the henselization of $(K,v)$. We consider the question: given a value
transcendental extension $w$ of $v$ to $K(X)$ and a pseudo monotone sequence
$E$ in $(K,v)$, under which precise conditions is $w$ induced by $E$? The dual
nature of pseudo convergent sequences of algebraic type and pseudo divergent
sequences is also explored. Further, we provide a complete description of the
various possibilities of the rank of the valuation $v_E$, provided that $v$ has
finite rank.
