Abstract. This paper defines basic terms of movement and system of reference points in a city. We can conclude that primary difference in the perception of space and spatial orientation depends on the fact whether the subject lives in the city or he is a foreigner to that space. In this respect, we can conclude that when it comes to space orientation, foreigners mostly rely on visually and dimensionally strong and visible reference points, which can simultaneously be historical or morphological in terms of their character. On the one hand, the subject who is familiar with the area typically moves within a system of individual reference points. Individual system of reference points does not necessarily require any of the physical features that recommend an object as a reference point. On the other hand, there were numerous theories among which Lynch, after conducting a series of experiments related to space perception, pointed out that orientation depends solely on one's ability. Based on the analysis of the system of reference points, position of focus points and their relations, we can conclude that Podgorica, as most towns in Montenegro has a problem in terms of visual readability.