The Moto 360 does not have a magnetometer. The compass has problems finding North. Support for the Moto 360 is limited

This is a compass for your Android Wear with a unique Pointer mode. Feel when you are heading in the right direction.

The compass has two modes:

Normal:

use it as you would use any compass app.

Pointer mode:

stretch your arm and point. The watch will start buzzing when you are pointing to the set bearing.

Switch between the modes by swiping the screen (left is normal, right is pointer mode)

Tap the screen to say your bearing: "Bearing north west", "Bearing 38 degrees".

On the phone you can set your bearing by placing a marker on your desired location. The bearing is adjusted during your travels.