Signals vs Observables: When to Use Each

Both Signals and Observables are reactive, but they solve different kinds of problems. ## Quick comparison ### Signals are great for - local UI state - derived values inside components - simple reactive logic without stream operators ### Observables are great for - async streams (HTTP, websockets, events) - cancelation and operator pipelines - complex async workflows (switchMap, retry, debounceTime) ## Think of it like this ```mermaid flowchart LR A[Signals] --> B[Local UI State] A --> C[Derived UI Values] D[Observables] --> E[Async Streams] D --> F[Event Pipelines] D --> G[Cancelable Requests] ``` ## Best practice for modern Angular teams - Use Signals for component state. - Use Observables for external async data. - Convert between them when needed (without mixing everything). > Next: Converting Observables to Signals and using them together cleanly.