Material

I just wanted to say thank to the awesome help provided here. I did find some resources for my situation and somehow I even found the " Signals for Dummies " book..

 

These pages did have some information that helped me.

http://www.rr-cirkits.com/Clinics/PDX-2015-Signals.pdf



https://www.building-your-model-railroad.com/railroad-signals.html
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and these books helped a bit more..

First questions first

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I re-read your OP and it answered my question.

it would make an interesting article

i think an article discussing how to identify the blocks, identify what information is needed (i.e. blocks occupied, turnout position, ...) and what signals should be displayed would be very interesting.      the article should avoid a discussion of the electronics.  there are plenty of electronics articles already.   Maybe discussing how signals shoud be arranged on various layouts of appropriate size would work

bruce chubb wrote a series on signals in RMC that may be helpful, but i think something for typical basement size single level  layouts would be more helpful. 

Signals

Model railroaders have a lot of different things they mean when they say "I want signals".  A large portion of the time they mean "I want turnout indicators" or  "I want CTC", two completely different things.

For CTC, in a nutshell its all about the main track, places/switches where a train clears the main track or where a train changes or crosses a main track are control point (CP).  Switches and signals at CP's are controlled by the dispatcher/control operator.  Between them are blocks.  Any switch in the main track should have detection.  If a block is two train lengths or more longer, it should have an intermediate signal.  You put a signal on each main track at each entrance to the CP, not at every switch.