There's a small electronics board in the base, see if the wires are all attached. See that there are no breaks in any of the wiring. I think that signal has one black wire (common), one red wire and one green wire. When the engine is approaching the signal, it should be green, then as it gets to the tripping mechanism it changes to red. As the engine keeps moving and clears the tripping mechanism, it has a timer circuit that should change it to yellow and then back to green. If wires are intact, then the circuit board is probably faulty. By the way, with the engine approaching the signal, the signal should be green provided there is nothing changing the signal to red. Check your instructions also.
Steam Forever
John