There is a NYC transit video that shows fixed block signals, that only allows a train to enter the next block, that is 2 blocks in back of a train that is in front of them ... But they are now upgrading to traveling block signals in each train, that travel  along with the train, and allows many trains to bunch together much closer.
I place most of my signals by placing them in excess of a 1 1/4 mile long train ... that way my 1 mile long trains stay very separated
If one was doing a subway route your blocks would be much closer together, a tad longer than the average subway train consist