How do you know when the needle is pointing north?
The end of the needle that is coloured aligns with the line that is marked on the background.
One end of the needle is often colored red in some way to indicate that it points towards the north. The other end of the needle is often colored blue in some way to indicate that it points towards the south. We know that a compass points to the north when the red end of the needle coincides with the line that is marked with the letter 'N' indicating that it is indeed north.