Hello again. Thank you for your reply as well. To adress what exalted means in astrology I will explain what the dignity of a planet is.
In astrology we have 12 zodiac signs. Each sign represents an element (fire, water, earth and air), a modality (cardinal, fixed and mutable), and finally a polarity (masculine, femenine). These attributes help you understand how each sign works and what exactly it means. Let's use an example. We'll use the sign of Virgo.
Virgo is an earth sign, that has a mutable modality and a femenine polarity.
Earth: Means that the sign focuses on the physical plane. It focuses on everything that's tangible and that is practical. This is because the element of earth represents ground, represents a solid base. That's why they're cautious signs, because they need a solid base to rely upon in order to feel comfortable. That's why earth signs are called down-to-earth or need physical love. This is clearly different from the water, fire and air signs since these signs focus on different things. Fire focuses on action; water focuses on feelings, and air focuses on intelligence.
Mutable: This modality describes HOW the element acts. It tells us the mode of behaviour of a sign. Virgo is a sign that has to do with routines, with working everyday, with perfection; it is a sign deeply affected by its environment. It works for his or her routine. If that routine changes, so does Virgo. That's why it's mutable. Mutable means it changes and adapts. On the other hand we have cardinals (which start things) and fixed signs (which are the most consistent and stick to their plans).
Femenine: This is the least important of a sign's attributes, because it just means that whatever sign is femenine is receptive, reactive, introverted, passive, indirect, etc. Masculine signs on the other hand are extroverted, outgoing, giving, active, etc. All of the earth and water signs are femenine, while all of the fire and air signs are masculine.
Now, let's relate all of these concepts to the planets themselves. The planets also work in a way or another. The Sun is giving, aggressive, outgoing, extroverted, etc. (that's how the Sun likes to work) and so if you have a certain planet in a sign, the energies that merge with that position MIGHT or might not work well with each other. Let's analyze the planet of the Sun for the sake of simplicity.
The Sun is described by many astrological sources and pretty much by everyone to be "masculine, diurnal, hot and dry and choleric". Then, obviously there are going to be signs where the Sun wants to be more than in others right? The Sun won't like as much to be in a sign that's emotional, that's introverted, like say Pisces. In this particular sign the Sun is peregrine (for the sake of simplicity we'll call it neutral) meaning it doesn't gain or lose from being in Pisces. On the other hand, the Sun very much likes the sign of Leo, where its rulership is at. Leo is outgoing, creative, giving, masculine... so Leo is the rulership of Sun.
Now in astrology we usually have OTHER signs where a planet can also work well. One of these is exaltation. Exaltation means that the planet, while it is not in a sign which the planet agrees with fully, it is in a sign that despite its differences gives to the planet what the planet NEEDS (and not necessarily wants). For example, let's go back to the Sun. The Sun finds itself exalted in Aries. Why? Because Aries is a sign that fully utilizes all of its energy into a single point. Don't you think that the Sun needs that? To fully use every bit of its energy into a single goal? Cause Leo works and sends energy into every direction; not a single direction. Leo wants to give things to EVERYONE and be generous with everyone. While Aries only wants to accomplish things that have to do with himself.
And now let's talk about the Moon. The Moon finds itself in rulership when she's in the sign of Cancer, since that's a motherly, emotional, loving sign. The Moon also represents the mother in one's natal chart. That's why its rulership is in Cancer. However, when it's in the sign of Taurus, the Moon is exalted because it finds herself in a place of comfort, a place of love, a place of luxuries. Taurus is a fixed sign so that Moon will probably want to stay in good terms with everyone and will avoid any emotional drama. It represents a mother that wants to give their children the best kind of food, the most expensive silverware, etc. Let's remember that Taurus is a sign that has to do with luxuries and money.
Now that's only to understand what dignities are in the planets. The planets will work better or worse depending on what aspects they have or what house are they in.