Either can work, it just depends on what you're looking for. Carefully lining the shade into the recesses will give a smoother and cleaner look, but take much longer. Applying it over the whole surface will be much faster, but leave the flatter areas with more color variation (not necessarily a bad thing).
Personally, I remember before shades were a thing and we just had the inks that would really stain the surface color if applied broadly, laboriously lining ink into panel lines... I'm quite happy to never do that again! IMO, it's much easier to apply the shade over the entire surface and, if the finish on the flat areas looks too patchy, go back and layer over with the base color again to smooth things out.
Good luck with your Wave Serpent!
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