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On the problem of wireless sensor network localization, few true three-dimensional (3D) methods have been developed to satisfy the practical needs. In this work we propose a range-based 3D localization algorithm that is accurate, anchor-free, scalable and physical position available. A novel combination of distance and direction measurement technique is introduced to estimate ranges between neighbors. Based on this information local coordinate systems are constructed and then converged to form a global network wide coordinate system, which finally leads to nodes' absolute positions. Simulation results have shown that our algorithm achieves good tradeoff between localization percentage and precision when node degree equals 12 or around.