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Sensor localization has become an essential requirement for realistic applications over wireless sensor networks (WSN). In this paper we propose an ad hoc localization algorithm that is infrastructure-free, anchor-free, and computationally efficient with reduced communication. A novel combination of distance and direction estimation technique is introduced to detect and estimate ranges between neighbors. Using this information we construct unidirectional coordinate systems to avoid the reflection ambiguity. We then compute node positions using a transformation matrix [T], which reduces the computational complexity of the localization algorithm while computing positions relative to the fixed coordinate system. Simulation results have shown that at a node degree of 9 we get 90% localization with 20% average localization error without using any error refining schemes.