An important problem in mobile ad-hoc wireless sensor networks is the localization of individual nodes, i.e., each node's awareness of its position relative to the network. In this paper, we introduce a variant of this problem (directional localization) where each node must be aware of both its position and orientation relative to the network. This variant is especially relevant for the applications in which mobile nodes in a sensor network are required to move in a collaborative manner. Using global positioning systems for localization in large scale sensor networks is not cost effective and may be impractical in enclosed spaces. On the other hand, a set of pre-existing anchors with globally known positions may not always be available. To address these issues, in this work we propose an algorithm for directional node localization based on relative motion of neighboring nodes in an ad-hoc sensor network without an infrastructure of global positioning systems (GPS), anchor points, or even mobile seeds with known locations. Through simulation studies, we demonstrate that our algorithm scales well for large numbers of nodes and provides convergent localization over time, even with errors introduced by motion actuators and distance measurements. Furthermore, based on our localization algorithm, we introduce mechanisms to preserve network formation during directed mobility in mobile sensor networks. Our simulations confirm that, in a number of realistic scenarios, our algorithm provides for a mobile sensor network that is stable over time irrespective of speed, while using only constant storage per neighbor.