We present a theoretical model that describes the resolution and linearity of a novel transparent X-ray beam imaging and position measurement method. Using a pinhole or coded aperture camera with pixelated area sensors to image a small fraction of radiation scattered by a thin foil placed at oblique angles with respect to the beam, a very precise measurement of the beam position is made. We show that the resolution of the method is determined by incident beam intensity, beam size, camera parameters, sensor pixel size and noise. The model is verified experimentally showing a sub-micrometer resolution over a large linear range.