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How you proceed with signals can be as simple or as complex as you want. Finding out what your prototype did is important but in all honesty, most systems the big guys use are pretty complex and cover much larger distances than we can fit on a model railroad. Most shortlines were dark (no signals). Do some research to find out about placement and type used by the railroad you are modeling. Even if all they do is sit there and look cool, they will be the right ones for your line and will enhance the realism of the scene.. Typically, model signals consist of a signal that controls power to a block of track next to the signal and one or more sensors and relays to keep track of trains leaving and entering the signal's control area. There are a myriad of control systems and ways to set up the trigger system for the signal. On the simpler end of things you can buy signal controllers that sense a passing train and run the signal through all its aspects after the train has passed. This is more for show than train control. If you are running DCC you can have operators stop at signals on their own with no power blocks controlled by signals, making things simpler and cheaper. If you want the signals to operate trains automatically it increases complexity and cost significantly. If you want to operate protypically you will need some sort of remote centralized control board in most cases. Unless you have a large layout with extra room, you will have to make some comprimises and use some selective compression. Years ago, we had a layout with signals controlled by relays and track sensors. We were able to run four trains on a double main completly automatically (look ma, no hands). It wasn't real prototypical, but it sure looked cool and visitors were always impressed to see trains stopping and starting on their own. My last layout had signals controlling blocks operated manually from control panels. On my new layout I will be using them simply as eye candy and to indicate the route selection of a few key hidden switches.
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