I'm not sure how it works, somehow senses distance traveled I think. But that being said, on the several bikes I've had with it, it doesn't work very well. It's very inconsistent, sometimes functioning as it should, sometimes canceling the signal seemingly too early, lots of times not canceling it at all. Thankfully the signals also have that "push to cancel" feature on the button. I use that most of the time because, well, I have to, lol. The signal doesn't cancel on it's own.