We present a motion detection algorithm which detects direction of motion at sufficient number of points and thus segregates the edge image into clusters of coherently moving points. Unlike most algorithms for motion analysis, we do not estimate magnitude of velocity vectors or obtain dense motion maps. The motivation is that motion direction information at a number of points seems to be sufficient to evoke perception of motion and hence should be useful in many image processing tasks requiring motion analysis. The algorithm essentially updates the motion at previous time using the current image frame as input in a dynamic fashion. One of the novel features of the algorithm is the use of some feedback mechanism for evidence segregation. This kind of motion analysis can identify regions in the image that are moving together coherently, and such information could be sufficient for many applications that utilize motion such as segmentation, compression, and tracking. We present an algorithm for tracking objects using our motion information to demonstrate the potential of this motion detection algorithm.