A method of detecting and counting road vehicles using an acoustic sensor placed by the road is presented. The sensor measures sound intensity in two directions: parallel and perpendicular to the road. The sound intensity analysis performs acoustic event detection. A normalized position of the sound source is tracked and used to determine if the detected event is related to a moving vehicle and to establish the direction of movement. The algorithm was tested on a continuous 24-h recording made in real-world conditions. The overall results were: recall 0.95, precision 0.95, F-score 0.95. In the analysis of one-hour slots, the worst results obtained in dense traffic were: recall 0.9, precision 0.93, F-score 0.91. The proposed method is intended for application in a network of traffic monitoring sensors, such as a smart city system. Its advantages include using a small, low cost and passive sensor, low algorithm complexity, and satisfactory detection accuracy.