This thesis is based on Minimum average correlation energy (MACE) with the image displacement to find the reference function of the minimum average correlation energy. First, we transform the color image into three HSV color space components. Then, three components are rotated (from 5o to 355o, the interval is 5o) and shifted (x = -5 to x = 5, the interval is 1 pixel, y =-5 to y = 5, the interval is 1 pixel) at the same time. Finally, we compute the original components and process components by using MACE method and linear correlation. Through the computation we will get the reference functions of the minimum sidelobe energy and record the relevant data. By the rotated and shifted processes, we could make the correlation peak more sharper and decrease the sidelobe energy, so as to increase the recognition ability and reduce false alarm rates .