In/Out of combat?

How do I tell if I am in or out of combat? was trying to loot a sack after falling slightly for 1 dmg, and I kept getting told I was in combat.. how do I see when I am in combat? If that feature exists, it needs to be more obvious

 

You toggle combat with the Z button...if you have two bars of actions/spells to pick from, you are typically "in combat"

Also, so you don't get left behind when you are in a group and may be overweight etc...

When the leader of a group teleports or recalls from the same zone you are in, a "follow button" will appear, that allows you to follow them without using a scroll yourself or manage your weight down to be non-encumbered. If you are "in combat", you will miss this tag-along opportunity...

 

Also, to get back to your question

there is a red sword showing up in the middle of your combat bar when you are in combat.

If your combat bar is still shown when you are out of combat, you can check your controls and see if you have toggled for it to always show. If you prefer it to be hidden when you are out of combat toggle it to not show when in peace mode.

There is a writeup of combat options in the Player Guide.
https://docs.google.com/document/d/1Z-svq1OvcZwViqGxFCKdjH3NCn2LTfLuGny5qaAqjTM/pub#h.38rmdxlzl0o