To use an SQO to solve the traffic light problem, you have to completely define your light patterns in terms of the Output Word O:2, bits 0, 1, 2, (3 not used), 4, 5, & 6. For example the bit pattern for the first step might be to turn on both Red lights (E/W and N/S), O:2/0 and O:2/4, with all other lights off. To do that, your Output bit pattern from high to low bit would be "0 0 1 0 0 0 1". If you go to the Data Table and view that pattern as a Decimal number, Binary 001001 = Decimal 17. So you need to MOVe "17" into the SECOND memory location of your Sequencer File. Say you start your SQO File at #B3:0, then B3:1 needs to have a value of Decimal "17" MOVed into it. Continue like this for the other 5 lights, setting up a stored number that represent the binary value for the light Oututs in each step of the 6-step cycle, then use a timer to trigger the SQO each time the traffic light changes. I suggest switching times of 1, 11, 91, 131, 221 for a 0-to-26.1 second cycle.
...and a self resetting 2 second timer.
Wait, you have lost me with that 2 second timer. That is awfully SHORT for a complete 6-light 6-cycle traffic light. Those drivers are really going to have to be on the ball. There will be no time for little old ladies going to church!