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This paper proposes a novel algorithm for tracking a target from UAV(Unmanned Aerial Vehicle). No knowledge is assumed about the target, apart from being in motion. The algorithm includes optical flow to compute velocity field of sequential frames. Velocity field varies radically near the boundary of the target. This simple fact enables to segregate the target and background from the scene and to obtain their velocities. With the aid of simple geolocation method, we can get the absolute location and velocity of the target and this will enable target tracking for UAV based on optical flow.