Terry slams his fist into the ground, creating a burst of energy that travels across the ground. Much like Hadoken, the move has two different speeds, depending on whether or not the player holds the button or taps it (Hadoken has heavy, medium, and light variants, but Power Wave only has heavy and light). Upon activation, Terry will either shout "Power Wave!", "Rock you!", or "Hah!". Power Wave covers a lot of horizontal distance while having a relatively large hitbox, allowing it to control a lot of space for the player. It has decent vertical range as well, making it sometimes even cover short hop approaches. However, it has very little followup potential in comparison to Terry's other moves, making it almost strictly used for this. On the other hand, if Power Wave has been out for a while, it is possible to follow up with Crack Shoot or even Buster Wolf.
If used in the air or at the edge, Power Wave will instead be a burst of energy that covers a small distance around him, known as Round Wave. This version does more damage and knockback in exchange for range. Unlike Power Wave, Round Wave has transcendent priority akin to Wolf's Blaster, allowing it to bypass projectiles completely. It also sends the opponent at a horizontal angle, making it a good option for gimping opponents off-stage. Due to its range and disjoint, as well as its ability to stall Terry in the air, this is also a very safe edgeguarding option as well. Round Wave also hits the ledge, enabling it to be a decent ledgetrapping option. It’s also considered a projectile as well like its ground version.
Terry can perform a Power Wave out of some standard attacks, as part of his special-canceling mechanic. By pressing the special button after connecting with one of certain standard attacks, Terry will cancel the endlag of the attack and perform a Power Wave. Compared to some of his other special moves, Power Wave is not nearly as effective for follow-ups. This is due to Power Wave's very high endlag (FAF of 50), which at close range can even be unsafe on hit.
However, there are niche scenarios where cancelling into Power Wave can be favorable. Once forward tilt sends into tumble, Burning Knuckle and Buster Wolf are no longer valid followups. In this scenario, Power Wave becomes more viable to keep up the pressure. Cancelling into Round Wave through neutral aerial is also viable off-stage for more effective gimps, as Round Wave can occasionally be difficult to connect. Outside of these scenarios, however, cancelling into Power Wave is almost completely suboptimal.
Power Wave is a special move within Terry's repertoire that has stuck with him since the original Fatal Fury, making an appearance alongside him in every following Fatal Fury title and later in The King of Fighters series. The move is typically a quarter-circle towards opponents much like the Hadoken but this element is missing in Smash Bros., with the motion instead being given to Burning Knuckle. The aerial version is based on a similar move known as the Round Wave seen in games like The King of Fighters '96.