Clomid is actually quite a potent and somewhat complicated medication. It is capable of reacting with all of the tissues in the body that have estrogen receptors.
These tissues include hypothalamus, pituitary, ovary, endometrium, vagina, and cervix. Clomid influences the way that the four hormones required for ovulation, GnRH, FSH, LH and estradiol, relate and interrelate. While we do not completely understand the mechanisms by which this drug works, in essence it appears that Clomid fools the body into believing that the estrogen level is low. This altered feedback information causes the hypothalamus (an area of the brain) to make and release more gonadotropin releasing hormone (GnRH) which in turn causes the pituitary to make and release more FSH and LH. More follicle stimulating hormone and more luteinizing hormone should result in the release of one or more mature eggs - ovulation.