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"This diagram indicates the signal being switched from A to B."

In interpreting the above sentence, which interpretation is correct?

a) This diagram indicates that the signal is being switched from A to B.
b) This diagram indicates the signal which is being switched from A to B.

How about this sentence?
"I do not like him doing such a thing."

a) I do not like that he does such a thing.
b) I do not like him who does such a thing.

Not much difference??
Comments  
This diagram indicates the signal being switched from A to B.

  • This diagram indicates the moment or period when the signal is switched from A to B.
signal being => signal is in process of

This diagram indicates when/that the signal is in process of being switched from A to B.

"I do not like him doing such a thing."

  • I do not like him when he does such a thing.

  • I do not like him because he (always) does such a thing.
[being and doing in the above sentences do not require is being and is doing, rather is and does]
I see...this is the way the sentences should be interpreted.

However, please help me a little bit more since I am still confused in interpreting some sentences like:

1. This (diagram, data, etc.)shows the signal using A and B.
(Here, does "using A and B" modify the signal? If so, the meaning of the sentence will be "This shows the signal which uses A and B." Or does this sentence mean "This shows the way the signal is using A and B"?)

If I say, "this is the signal using A and B," is it interpreted differently from the above 1?

2. This (diagram, data, etc.) shows the signal indicating A and B.
(Here, does this mean "This shows the way the signal is indicating A and B"? Can it possibly be interpreted like "This shows the signal which indicates A and B"?)

What I am confused is whether the nouns before the "~ing" form can be modified or not in these cases. For example, in the sentence like "English has an alphabet consisting of 26 letters," "consisting of 26 letters" modifies "an alphabet," right?

Sorry, I cannot explain well enough my points. Any advice is appreciated. Thank you.
Students: We have free audio pronunciation exercises.
1. This (diagram, data, etc.) shows the signal using A and B.

You can interpret it in several different more or less similar ways.

  • using can modify signal or to be a replacement for uses

  • shows the signal may have one missing that: shows that the signal

  • the signal could mean the one signal, that one signal
  1. This diagram shows one specific signal that one that uses A and B.

  2. This diagram shows that the signal uses A and B.

  3. This diagram shows (confirms) that the signal really uses A and B.

  4. This diagram shows the signal that uses A and B.

  5. This diagram shows the way the signal uses A and B. indirect interpretation
(Here, does "using A and B" modify the signal?

Yes

If so, the meaning of the sentence will be "This shows the signal which uses A and B."

possible

Or does this sentence mean "This shows the way the signal is using A and B"?

maybe indirectly, but yes)

If I say, "this is the signal using A and B," is it interpreted differently from the above 1?

Yes, but that is only one possible interpretation

2. This (diagram, data, etc.) shows the signal indicating A and B.

  1. This diagram shows one specific signal that one that indicates A and B.

  2. This diagram shows that the signal indicates A and B.

  3. This diagram shows (confirms) that the signal really indicates A and B.

  4. This diagram shows the signal that indicates A and B.

  5. This diagram shows the way the signal indicates A and B. indirect interpretation
(Here, does this mean "This shows the way the signal is indicating A and B"? Can it possibly be interpreted like "This shows the signal which indicates A and B"?

Both. The first one indirectly.)

What I am confused is whether the nouns before the "~ing" form can be modified or not in these cases.

Yes it can, but not only that.

For example, in the sentence like "English has an alphabet consisting of 26 letters," "consisting of 26 letters" modifies "an alphabet," right?

Yes.

English has [that] an alphabet consisting of 26 letters. impossible so no problem with that

English has an alphabet consisting of 26 letters. there is an not the, no problem with the

In "English has an alphabet that is consisting of 26 letters" you have of and this is a clear indication that consisting is a replacement for consists or is consisting, because if consisting is an adjective then an adjective has no preposition like of attached

English has an alphabet consisting of 26 letters = English has an alphabet that is consisting of 26 letters is the only possible interpretation.

As you can see each case is different, you have to take care of every piece of the sentences that is condensed. Sometimes, it is very possible that there are several possible interpretations. But, then the true meaning is given from the context. If it is not possible to decide from the context what was meant, maybe the safest way is to interpret a direct meaning, going the shortest path, and read the sentence as such:

This diagram shows the signal that uses A and B.

You have nothing else to suggest any other combination.
Dear Asperic,

Thank you very much for providing me detailed information and explanations.
I will follow your guideline and deal with various kinds of Egnlish sentences from now on.

Once again, I appreciate your great help!