The compass is very stable in areas close to the equator, which is far from "Magnetic North". At some point close to the Magnetic Pole, the compass will not indicate any particular direction but will begin to drift in a non direction indicating manner. Also, the needle starts to point up or down when getting closer to the poles, due to the so-called magnetic inclination. Cheap compasses with bad bearings may get stuck due to this; therefore, indicate a wrong direction.