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Magnetic anomaly detection is a good method for detecting ferromagnetic objects, particularly hidden targets. In this work, we address the detection of a moving ferromagnetic target using a static three-axis referenced magnetometer. The analysis and the results are also applicable to the converse case of a static ferromagnetic target and a moving three-axis referenced magnetometer. We use the three magnetometer outputs to build a total magnetic field of the target. This signal is decomposed into a set of orthonormal basis functions, out of which the dominant basis function is chosen as the detector. The detector provides output responses to any target magnetic moment orientation. We support the analysis by a computer simulation and real-world experimental results. The high detection probability and the simple implementation of the proposed method make it attractive for real-time applications.