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We present a mobile tracking system for hands and arms capable of detecting the full range of motion, suitable for use in mobile augmented reality systems. The hand position is tracked using orientation sensors attached to the upper and forearms. Using two or more orientation sensors, the natural movements of the human arm can be captured relative to the user's torso. This tracking technique allows unique interaction in a mobile augmented reality environment performing tasks such as selection and moving of 3D objects. Further, we have applied a non-linear scaling technique allowing out of arms reach interaction area.