In a method for identifying and locating moving or movable objects 1 solely optical signals are used wherein optical transmitters 2 emit unique optical signals by interrupting the optical signal (i.e. flashing) to send a bit sequence to the receivers 3. The identifier encoded in the bit sequence represents the transmitter's 2 ID. The signals are received using optical receivers 3, so that the signals appear on at least one pixel of the CCD, CMOS etc. matrix sensor 8 of the of the receiver 3. The transmitter's 2 location, and hence the object's 1 location, can be determined using a mathematical method based on the lit pixels. The signal processing rate is set higher than the speed at which the transmitters 2 move, so that transmitter 2 displacement can be tracked using a mathematical method and the objects 1 can be identified on the move. As a novel feature of the present invention the transmitter 2 - receiver 3 pair implements locating and identification using a single technology. The transmitters 2 can be mounted on the moving objects 1, with the receivers 3 fixed; or alternatively, the movement of several objects 1 can be controlled independently from each-other by mounting the receivers 3 on the objects 1 and fixing the transmitters 2.