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In this paper a new fast block based motion estimation algorithm is presented. The new algorithm is based on well known diamond search with incorporated recursive and multi stage techniques. Its main benefit against other existing fast block based motion estimation algorithms is the ability to overcome the ambiguity in motion estimation (aperture problem, indeterminate flow vector in regions with constant brightness) that yield from optical flow equation. These problems are eliminated due to our new search strategy which employs fact that the image pixels corresponding to the same object projection all account similar movement. The algorithm with combined recursive and multi stage techniques is capable of estimating vector motion fields with eliminated chaotic motion fields and approaching true motion field.