It is similar to risk-reward. It is derived using the below formula:
Profit Factor = Total Profit by winning trades / Total loss by losing trades
Fact - A trading system above 1.2 PF is good if it scores well with other factors.
(2/n)
#FreeTip
— HMK alias MANOJ (@scorpiomanojFRM) June 23, 2021
A general rule to assess if a market is ranging is to look at developing TC and / or developing BC. If either of them is flat, it means market is currently ranging. If you are trading in 5 min, go to a lower tf chart, say, 2 min to have a less lagging assessment.