How do you use a constellation diagram?
Each symbol is encoded as a different combination of amplitude and phase of the carrier, so each symbol is represented by a point on the constellation diagram, called a constellation point. The constellation diagram shows all the possible symbols that can be transmitted by the system as a collection of points.
Why is constellation diagram important?
The constellation diagram is useful because it displays both the ideal (reference) signal and the actual measured signal on the same plot. The ideal signal locations of a constellation diagram are pre-defined generically depending on the modulation format chosen.