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In this video tutorial, the presenter demonstrates how to create a traffic light in Excel based on specific conditions. If sales amount is more than 30,000, the traffic light will be green; between 15,000 and 30,000, it will be yellow; less than 15,000, it will be red. By using conditional formatting and changing format style to icon set, users can customize the traffic light display based on specified conditions. It is important to ensure that logical expressions are properly set to match the conditions outlined in the table for accurate results.