When it is green, there is propane in the selected tank (valve must be open). When it turns red, either the tank valve has been closed, or that tank is empty, and the regulator automatically switches to the other tank. As soon as you switch the selector, it will turn green again showing that the selected tank has propane, again, assuming it actually has propane in it and the tank valve is open. Then it is time to fill the empty tank so it will switch again when the other tank runs dry.
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