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The NDL uses homodyne detection to obtain changes in signal frequency caused by a target of interest. Frequency associated with each segment of the modulated waveform collected by the instrument is positive or negative, depending on the relative range and direction of motion between the NDL and the target. Homodyne detection offers a direct measurement of signal frequency changes however only the absolute values of the frequencies are measured, therefore additional information is necessary to determine positive or negative sign of the detected frequencies. The three segmented waveform, as opposed to conventional two-segmented ones, allows for resolving the frequency sign ambiguity. In a practical system, there are times when one or more of the three frequencies are not available during a measurement. For these cases, knowledge of the relative positions of the frequency sideband components is used to predict direction of the Doppler shift and sign, and thus make correct range and velocity measurements. This algorithm provides estimates to the sign of the intermediate frequencies. The instrument operates continuously in real time, producing independent range and velocity measurements by each line of sight used to take the measurement. In case of loss of one of the three frequencies, past measurements of range and velocity are used by the algorithm to provide estimates of the expected new range and velocity measurement. These estimates are obtained by applying an estimation filter to past measurements. These estimates are used during signal loss to reduce uncertainty in the sign of the frequencies measured once signals are re-established, and never to replace value of a measurement.