The paper reports the methods for making a novel optical device consisted of photo alignment nematic liquid crystal films and polarizers. The color shift of the device depends on not only the viewing angle but also the viewing orientation. The retardation and intensity of the reflected light are theoretically calculated on the basis of Jones Matrix, and a spectral-RGB transition program is introduced to display colorful results directly. The theoretical results show excellent agreement with experimental data. It is an effective method for predicting interference color and optimizing key parameters of the device. The device can be used to protect valuable documents against fraud because of its special optical variable effects which is caused by interference of polarized light.