The operating principle and the performance of chromatic dispersion (CD) measurement technique are discussed through developed numerical models. The performance of the CD measurement technique was studied in terms of the measurement range and sensitivity as the wavelength separation was varied. Based on the numerical model, the technique sensitivity increased with wavelength separation. However, this increase in sensitivity was traded off with a narrower measurement range. The measurement technique was optimized at 5.0 GHz wavelength separation with a sensitivity of 0.009 (dB/ps/nm) and measurement range of 2500 ps/nm.