Here are some rules for determining the terms of trade https://justforex.com/education/ ... iving-trading-forex ADX (Average Directional Movement Index) is below 20: When the ADX is below 20, the trend is weak, which is the main sign of a range market. If the ADX is below 20 and continues to decline, this is confirmation not only of the weakness of the trend, but also that the conditions for range trading are likely to persist for some time. Decline in Implied Volatility: A fall in short-term volatility (especially after a spike above long-term volatility) usually indicates a return to range trading scenarios. Volatility usually rises sharply when a currency pair experiences sharp, rapid moves. Volatility decreases when the ranges are tight and the markets are very calm.