The Pickett plot is a graphical method derived from the Archie equation that visually represents true resistivity as a function of porosity and water saturation. It provides a means to estimate water saturation and formation water resistivity through the construction of a log-log plot, where true resistivity is plotted against porosity, allowing for analysis of different formation zones. While the technique has advantages in estimating water saturation without known prior parameters, it has limitations, such as difficulties with shaly formations and the assumption of constant formation lithology.