Using a pulsed ultrasound field, the two-dimensional velocity vector can be determined with the invention. The method uses a transversally modulated ultrasound field for probing the moving medium under investigation. A modified autocorrelation approach is used in the velocity estimation. The new estimator automatically compensates for the axial velocity, when determining the transverse velocity by using fourth order moments rather than second order moments. The estimation is optimized by using a lag different from one in the estimation process, and noise artifacts are reduced by using averaging of RF samples. Further, compensation for the axial velocity can be introduced, and the velocity estimation is done at a fixed depth in tissue to reduce spatial velocity dispersion.