This study aims to implement an image processing algorithm for detection of both red and blue stained blood cells to help in diagnosis of iron deficiency anemia in a more effective and efficient way. Our approach allows us to obtain the exact number of each stained blood cells. The algorithm also calculates the percentage of blue and red stained cells in the given specimen image sample. This information is vital in detecting the disease and determining its severity. Although the algorithm is designed in such a manner to provide flexibility regarding the selection of either a particular region or a whole given image sample, the calculations are done for the desired region only. Images of villi cells taken from the small intestine of humans were used.