This isn’t about deriving meaning necessarily, but recognizing what word a word is. Take the example statement “the technique is ubiquitous across the nation.” What you’re describing is using context clues to determine that ‘ubiquitous’ is an adjective to describe the technique and maybe that it has to do with how much it exists across the nation. The technique described above is a counterpart to phonics. If you had never seen the word ‘ubiquitous’ before you could still phonetically parse out yoo(maybe “uh”)-bih-qui-tuss. With three-cueing, if ‘ubiquitous’ is a brand new word for you, you might pronounce it ‘all’ because that’s the word you already know that might make sense in that sentence. My understanding is that you’re not recognizing that those are two distinct but similar words, you’re just trained to guess at what the sentence is trying to say.