In Android smart watch,If device is not interactive then watch will enter from Interactive Mode to Ambient Mode
In this Google link https://www.youtube.com/watch?v=Rwshwq_vI1s,they have explained only App StandBy and Doze mode
My Query here is Android Wear App flow will be from Interactive -> Ambient -> StandBy
or
Both App Standby and Ambient is Same?
Ambient Mode and App Standby are not the same, ambient mode allows your app to keep running on the foreground while staying visible to the user, and if your app is running on the foreground it will not enter to the stand by mode, see next paragraph:
As you can see the ambient mode allows you to stay on the foreground thus not allowing to enter Stand By, it's worth noting that to be able to use the Ambient Mode the user has to enable the option Always on screen on the device.