Hi
Apple Watch uses different sensors and data sources to track the results of workouts, depending on the activity type and their availability.
For example, with Apple Watch (first generation) and Series 1 models, the watch can access GPS data from the paired iPhone if it is taken along during outdoor walking, running and cycling workouts. Series 2 has built-in GPS.
For workouts where GPS data is not relevant or available, but arm movement is - such as during treadmill-based walks / runs - the Activity app and Workout app rely on tracking your arm motion (measured by the accelerometer) when estimating results.
For the best results, allow the arm on which you are wearing your watch to swing naturally during general daily wear and to move as expected during relevant workouts.
To help improve the accuracy of calorie and other activity-related estimations made by Apple Watch, you can calibrate it.
Calibration teaches your watch how your arm movements relate to your stride lengths at different speeds when you are walking and/or running. It does this - during outdoor walks and/or outdoor runs - by comparing data from the accelerometer with GPS (Location Services) data. To calibrate your watch - and to reset existing calibration data, if desired - follow the instructions here:
Calibrating your Apple Watch for improved Workout and Activity accuracy - Apple Support
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