The Moiré method is a well-known technique which can be used to measure in-plane and out-of-plane deformations. The basis of all moiré methods is gratings, which for metrological applications are primarily an array of dark and bright lines or a set of crossed array of lines or dots. Moiré is a process where the intensity distributions of two dissimilar grid patterns are combined, for example by superimposition. The direct approach to generating moiré patterns is utilizing the aliasing phenomenon, which is generally avoided in traditional image processing, now can be used to analyze the deformed specimen grating for deformation studies. An alternate approach, the digital moiré method, is to use logical operations for generating moiré patterns. Accepted as a novel mathematical tool, wavelet transform has a great advantage for image processing. In this pager, we apply it to simulate the aliasing phenomenon. In analysis of moiré fringes, phase shifting is by far the most powerful of fringe analysis techniques. For digital moiré, phase shifting can be achieved simply by translating the software generated gratings by the appropriate fractional steps. An application for large deformation of rubber material is given; the result shows that the method is feasible.