How to use Activity ring
do I need to tap on the little guy walking in order for the activity rings to count my steps?
Apple Watch Series 4, watchOS 7
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No. Once you start a walking workout, the watch will count your steps. See the "Make sure that you earn Move and Exercise credit" section in:
Get the most accurate measurements using your Apple Watch - Apple Support
You should also make sure your watch is calibrated:
Calibrating your Apple Watch for improved Workout and Activity accuracy - Apple Support