A flexible optical displacement encoder configuration uses a source grating to illuminate a scale with structured light such that light from the scale is modulated with a beat frequency envelope which may have a relatively coarse pitch that matches a desired detector pitch. An imaging configuration provides spatial filtering to remove the high spatial frequencies from the modulation envelope to provide a clean signal in the detected fringe pattern. This combination of elements allows an incremental scale track pattern with a relatively finer pitch (e.g., 4, 5, 8 microns) to provide fringes with a coarser pitch (e.g., 20 microns) at a detector. Various scale resolutions can use a corresponding source grating such that all combinations can produce detector fringes that match the same economical detector component.