If I'm remembering correctly, that tool moves with the end of the line as you move it. It therefore shows the correct true bearing from your boat, since you are seeing it from the opposite direction.
Therefore, if you draw a line from your boat to the target, and the bearing is 240, if the tool was right side up it would read 060; but since it is upside down it will read the correct 240.
Also note that this is the true bearing, reading from North, rather than the relative bearing as seen from your boat's heading.
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