What are the parts of a compass? Check out the compass illustrated here: the compass needle is located inside the housing of the compass. A compass has a dial that is divided into degrees of a circle numbered from zero to three-hundred sixty (0-360) degrees. The dial is also marked with N, E, S and W to indicate North, East, South, and West. Turning the dial enables the map user to set an azimuth and follow it. Compasses have an orienting arrow located in the main circular housing, which turns with the dial. Compasses also have a direction of travel arrow that you must keep pointed, both on the map and as you hike, in the direction that you are travelling.