Quadrature Amplitude Modulation - combining amplitude and phase
Higher Order = More Bits: 16-QAM carries 4 bits/symbol, 64-QAM carries 6 bits/symbol, 256-QAM carries 8 bits/symbol.
Trade-off: More constellation points means higher throughput but requires better SNR to distinguish symbols.
Gray Coding: Adjacent symbols differ by only 1 bit to minimize bit errors from symbol errors.
Applications: Wi-Fi (up to 1024-QAM), cable modems, LTE, digital TV.