In a typical application, the ammeter is placed between the battery and the solenoid. It indicates if the battery is draining or being charged. So the amperage it sees is a lot lower than what the alternator can put out to run the rest of the devices which are on when the engine is on.
This is basically how my 1 wire is hooked up.
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My 60 amp alternator using an induction/loop amp meter has never even come close to "*******".If the amp meter is a wire through a loop style it will only peg.
Didn't have to worry about all that stuff with my old J-3 CubMost amp meters only register the load on the system. If there is no load then it will stay on the center line. A person should know what the alternator output is for their unit. Many of the older ones were from 35 amps up to around 42 amps. A D'arsonval type amp meter with two terminals can get damaged if there is ever a short in the wire from the alternator to the frame anywhere. If a person calculates the proper size and length of wire, the wire can be used as a shunt for the amp meter but I like the purpose made shunts better. A lot of cheap units have the shunt internal to the meter.
The aircraft I work on have a battery switch to access the battery to the buss as well as an alternator switch to turn the alternator on and off. A person can see if their alternator is working by shutting off the battery switch momentarily to see if the alternator stays on line. If it shows no indication of electrical operation when you shut off the battery switch then the alternator isn't charging. It doesn't hurt anything as long as you don't leave the battery off for more than a few seconds. It's just s momentary check that some pilots do. Most of the later models have a low voltage warning light now days that will tell you if it's charging or not. Personally, I like a volt meter better. If it shows near 14-volts then the alternator is definitely working. If it only shows battery voltage then the alternator charging system has a problem somewhere or the load is high.
My 60 amp alternator using an induction/loop amp meter has never even come close to "*******".
Is this just a theory ??
Going back to your diagram, unless the alternator is faulty (say a shorted diode), you will never see a discharge as the alternator should only produce current in the right direction. Then with the engine running and the alternator not producing enough current, the battery will supply the rest and you will not notice it. You are only measuring alternator output, not battery condition or vehicle load. You need a voltmeter or ammeter at the output of the battery to determine battery condition.