i'm guessing you are modeling the norfolk southern? if you want to be a real stickler, almost every railroad has it's own use of signals aspects and the NS definetly has some different signalling! as was stated above, the basic idea is similar to traffic lights. green, or "clear" means go, at your maximum authorised speed. yellow is called "approach" and is just like a yellow traffic light, it says be prepared to stop before passing the next signal. An approach usually has a speed restriction applied to it, on the NS it's reffered to "medium speed" which is defined as A speed not exceeding 30mph. The rule accord ing to the NS is defined as Proceed preparing to stop at next signal. Train or engine exceeding Medium Speed must at once reduce to that speed. Red, or "stop" means, well, stop. But with the NS, you have what they call a "restricting" which is all red with a number plate below the signal, or a red signal on top with a yellow below it. An all red signal with NO number plate is just called "stop" A restricting signal's instructions are Proceed at restricted speed. And of course Restricted speed is a big one. The version i am reffering to is in the NS version of the CORA, but is pretty much the same everywhere. It's defined as " A speed that will permit stopping within half the range of vision, short of train, engine, obstruction, railroad car, men or equipment fouling track, stop signal, derail, or switch lined improperly and looking out for broken rail, but not exceeding 15mph. basically if you can see clearly for a half mile, you need to be able to stop in half that distance, or 1/4 of a mile. There is no need to stop and then proceed on the NS it seems. how it basically works is, say you have two trains and one track. block or occupancy signals are typically placed about two miles apart. Say train "A" is at milepost 16, stopped. the signal behind it at MP 14 would be displaying red, or for the NS it would be called a Restricting. MP 12 would be yellow, or approach, and 10 would be green, or "clear". In front of "A" the signal at MP 16 facing the other way would be red, at 18 it would be approach, and the others would be clear. as "A" moves and the rear clears the signal at 16, the previously red signal at 14 will go to approach, and the approach at 12 will become clear. now if train B is following, that aproach signal will act as a buffer, letting him know that he is catching up and the next signal 2 miles away will probably be red, with a caboose or EOT behind it! Now, train B can pass that red signal if he wants to, provided it has a number plate. he can get right up on train A's rear if it's stopped, or hang back where he won't be blocking any roads or interlockings or anything