Update:
Tested that wiring diagram, and it works, but S3 must be maintained on, i.e., low, before choosing direction. The direction buttons then work as expected, i.e., a negative edge starts in the desired direction. Stop requires disabling S3. I'll may need to setup a latch on the stop switch on my machine so its default is low, i.e., NC.
It may already be that way. I just haven't dug into its wiring (I rewired the entire machine in 1984 and don't remember. It has full voltage magnetic controls.)
John