Emerging from motion analysis with the benefits of non-contact, high sensitivity, high precision, and simple operation, and the optical flow method can be utilized to measure micro-displacement. Because only one shot of the deformed fringe pattern is required in measurement, it is suitable for dynamic measurement. As a new tool for fringe analysis, some of its basic characteristics have not been found out, such as the measuring range and sensitivity, which are essential to displacement measurement. In this work, these basic characteristics of typical optical flow algorithms, the global H–S algorithm, and the local L–K algorithm, are discussed by using numerical simulation. The results prove that the minimum of the measurable phase change by both the H–S algorithm and the L–K algorithm is10−13πwith the relative error less than 0.4% under noiseless. The corresponding displacement on the image plane is 1.6×10−12 pixels, which is as good as that of the four-step phase-shifting method. The results also show that when the relative error is less than 2% and the Root-Mean-Square (RMS) error is less than 3%, the measurement range of the H–S and the L–K algorithm is about π/6 and π/2, respectively. But the minimum of the measurable phase change is decreased to 0.01π, which is 0.16 pixels displacement on the image plane, with the relative error less than 0.77% in the H–S algorithm and 1.71% in the L–K algorithm when the fringe patterns are polluted by the Gaussian noise of 40 dB. With increasing noise, the measurable maximum of the displacement will decrease while the minimum increase and the measuring range will lessen.