A Traffic Light banner has a traffic signal like look and it can be used for decoration. It shows three colors of light that are green, yellow and red.
This guide will let you know how to make a Traffic Light Banner in the Minecraft game.
The first thing you need to do is to bring the loom out of your inventory, add a light gray banner and red dye in it. Select a banner design to have a new one.
And then use this newly made banner again in the loom along with a lime dye.
Add this banner with a yellow dye in the loom. Select the design and this will give you a new banner in the right side box of the loom.