A 3D pointing device utilizing an orientation sensor, capable of accurately transforming rotations and movements of the 3D pointing device into a movement pattern in the display plane of a display device is provided. The 3D pointing device includes the orientation sensor, a rotation sensor, and a computing processor. The orientation sensor generates an orientation output associated with the orientation of the 3D pointing device associated with three coordinate axes of a global reference frame associated with the Earth. The rotation sensor generates a rotation output associated with the rotation of the 3D pointing device associated with three coordinate axes of a spatial reference frame associated with the 3D pointing device itself The computing processor uses the orientation output and the rotation output to generate a transformed output associated with a fixed reference frame associated with the display device above. The transformed output represents a segment of the movement pattern.