Afternoon Commanders,
I will attempt to try to clear this up....!
The lights are orientation lights so you can align your ship to the station in a consistent way. If you enter a station with the green on your right and red on your left you will find that the docking pad numbers are arranged front to back, clockwise, starting from below you. For legacy reasons, Pad numbers 1 and 13 were reversed. This is now fixed and will be included in a future update. All other pads follow a consistent numbering convention.
There is no “traffic light” system in operation.
The reason for the red lights on the cage flashing and the green ones kept steady is to help people with colour-blindness difficulties distinguish between them.
Be considerate – use your scanner and look around, if someone is coming through the portal be patient and let them pass.
Small ships should give way to large ships.
If commanders wish to use the “green” side of the portal to enter or exit from the station it is up to them, but it is not a convention, rule or the intended use of the lights. Large ships will need to use the centre of the portal to pass through anyway. NPC ships will always pass through the middle.
If you exit the station with the inner green light on your right and the red on your left, you will be orientated the same way up as an incoming ship, facilitating a gentlemanly wave between cockpit glass and the wish of good fortune between pilots.
Fly safe,
Simon