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This paper proposes a new mathematical algorithm for linear absolute encoder for long distance applications (>100 m). The new algorithm uses a stronger codification method than the classical binary one. Moreover, the proposed implementation uses only four optical sensors which make the method economically efficient. The algorithm and the proposed encoder where tested on an experimental setup. Design of the setup assures the control of all relevant parameters. Experimental results also allow the improvement of the initial algorithm by evolving from binary algebra to the polyvalent algebra (Lukasiewicz- Moisil algebra), using colors coding and color optical sensors.