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This paper presents a novel method for video-based traffic state detection on motorways performed on smart cameras. Camera calibration parameters are obtained from the known length of lane markings. Mean traffic speed is estimated from Kanade-Lucas-Tomasi (KLT) optical flow method using a robust outlier detection. Traffic density is estimated using a robust statistical counting method. Our method has been implemented on an embedded smart camera and evaluated under different road and illumination conditions. It achieves a detection rate of more than 95% for stationary traffic.