A receiver and method for receiving and processing a sequence of transmitted symbols in a digital communication system utilizing soft pilot symbols. A set of soft pilot symbols are transmitted with higher reliability than the remaining symbols in the sequence by modulating the soft pilot symbols with a lower order modulation such as BPSK or QPSK while modulating the remaining symbols with a higher order modulation such as 16QAM or 64QAM. The receiver knows the modulation type and location (time/frequency/code) of the soft pilot symbols, and demodulates them first. The receiver uses the demodulated soft pilot symbols as known symbols to estimate parameters of the received radio signal. Unlike traditional fixed pilots, the soft pilots still carry some data. Additionally, the soft pilots are particularly helpful in establishing the amplitude reference essential in demodulating the higher order modulation symbols.