A method for identifying a state of a stream of refrigerant includes capturing a plurality of sample images of a sensor for sensing the stream of the refrigerant, processing each of the plurality of sample images to identify a first color indicative of a dry refrigerant and a second color indicative of a wet refrigerant. The method also includes calculating an aggregated volume of each of the first color and the second color, wherein the aggregated volumes of the first color and the second color indicate a dry refrigerant or the wet refrigerant respectively in the stream. Further, the method includes comparing an aggregated volume ratio of the first color and the second color with a first threshold ratio and a second threshold ratio and determining the state as one of a dry state, a transient state, and a wet state based on the comparison.