An apparatus and method of wireless position sensing determining the location of a receiver relative to a transmitter in a three dimensional space and correlating that location to and interacting with a display device. The system includes a transmitting coil having a known orientation with respect to the earth's coordinate system and configured to transmit a periodic signal during a positioning event, at least one receiver including a sensing unit for measuring the magnetic field vector produced by the transmitting coil and the orientation of the receiver with respect to the earth's coordinate system, and at least one computing unit configured to estimate a position and orientation of the receiver with respect to the transmitter's coordinate system using the measured magnetic field vector, the measured orientation with respect to the earth's coordinate system, and the known orientation of the transmitting coil with respect to the earth's coordinate system.