Django signals enable decoupled communication by letting a sender send a signal without knowing who will receive it. When an event happens, the sender calls send on a signal object. The signal dispatcher then notifies all connected receivers. Each receiver runs its own code independently. This means the sender and receivers do not depend on each other directly. The sender does not call receivers explicitly. This separation makes the code easier to change and maintain. The execution trace shows defining a signal, connecting a receiver, sending the signal, and the receiver running. Variables track the signal object and receiver connection. Key moments clarify why sender doesn't need to know receivers and what happens if no receivers are connected. The quiz tests understanding of signal sending, receiver connection timing, and behavior with no receivers.