In most cases, we recommend caps or a bolder font for the headline. But, try to use upper and lower case for the rest of the sign. If the sign has a great deal of text, lay out your copy as it would be seen in a book or article. Too many capital letters becomes confusing.
Note that we read phrases or groups of letters at a time. You read clumps of letters, together, as one shape. Reading individual letters in all capital letters, would slow us down. In a type font, the ascenders and descenders provide important clues. One of the reasons that we do not spot many typographical mistakes is that we do not read letter by letter. Our "expectations" of what is about to be said allows us to speed through the passage.
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You may use the capital letter height for readability guidance. The illustration at right shows how much more readable the upper and lower case word is than the all caps version having the same "footprint."
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