In this paper we deal with the measurement of parameters of the gravitational wave signal emitted by a coalescing binary system of compact stars. We present the results of Monte Carlo simulations carried out for initial LIGO, incorporating the first post-Newtonian corrections to the waveform. Using the parameters so determined, we estimate the direction to the source. We stress the use of the time-of-coalescence rather than the time-of-arrival of the signal to determine the direction of the source. We show that this can considerably reduce the errors in the determination of the direction of the source.
