Here is a short video of conventional control trains running on a single track in opposite direction with 1 passing siding. The basic way it works is with four blocks that power a coil on a relay and it shuts off the incoming trains power and energizes the waiting train, it keeps doing this until the train enters the main line. It is done with 4 relays and each train has its own power supply
http://www.youtube.com/watch?v=NGxdCMMzVQA&feature=youtu.be