Sound localization plays an important role in everyday life. It helps us to separate sounds coming from different sources and thus to acquire acoustic information. This paper describes an algorithm for localizing the position of a sound source, as recorded by dummy head microphones. The recorded signals are considered to be basic, random signals within an imaginary round room. The goal of this research is to localize random signals produced from different positions using information about basic signals. The method used is based on the identification of similarities between basic and random signals. It includes an interaural time difference comparison at the beginning, and continues with further analysis of the differences in signal spectrums. One of the main issues arising in sound localization is the problem of front-back confusion, and this paper shows how it was resolved by the use of reference signals.