The present disclosure generally relates to a new computer input and tracking device, and method of using, more particularly, a new type of digital pen which tracks user hand movements to generate series of point coordinates that represent a drawing or hand writing. Unlike prior digital pens such as the Apple Pencil™ or the Microsoft Surface Pen™, the new system does not require users to write on a touch-sensitive surface. Users can write on any surface such as a notebook, a table, a board, or even in mid air. Users can draw two-dimensional or three-dimensional drawings. The new method utilizes a pen marked with one or more groups of distinct tracking marks or tracking patterns and a camera to track the pen in real-time. A computer running a 3D algorithm processes the camera images, detects and distinguishes the tracking marks, and uses the tracking marks to calculate the positions of the tip of the pen in three-dimensional space. The positions of the tips of the pen are then sent to a drawing application to generate a drawing or hand writing.