Method for augmented reality instrument placement using an image based navigation system

A system and method for instrument placement using an image based navigation system is disclosed. A target of interest is identified in a medical image of a patient. An image plane is displayed that goes through a center of the target. The image plane has a configurable orientation. The image plane is used to select a path for an instrument from a position on the patient's skin to the center of the target. A trajectory plane is viewed from a tip of the instrument to the center of the target. The trajectory plane reflects an orientation of the instrument. A particular trajectory plane is selected that is representative of a desired orientation of the instrument. An image of the particular trajectory plane is frozen. The instrument can then be inserted using a virtual guide and is navigated toward the target.