Signal measuring is an important link in machine fault diagnosis. Accurate and reliable fault signals can be achieved by reasonable signal measuring. When the distance between sensor and measuring gear or bearing is comparatively far, the collected signals became weak and disturbed by other vibratory signals in equipments on bearing and gear fault analysis. Useful signals often were submerged in powerful noise, so caused difficult in extracting fault feature. In this paper, according to the feature of vibratory signals in machine test, wavelet analysis basic theory was applied on researching basic feature of wavelet analysis. By selecting suitable wavelet function and applying wavelet elimination noise technology the signal to noise ratio of signal was raised, thus the vibratory impact component can be measured in weak signals. Finally, wavelet analysis was applied on bearing fault diagnosis.