A method can include directing fluid flow longitudinally through a well tool connected in a tubular string downstream of a longitudinally compressed circulating valve assembly, thereby causing the well tool to operate, and longitudinally elongating the circulating valve assembly while the fluid flow is ceased, and then increasing the fluid flow, thereby causing the fluid flow after the elongating to pass outwardly through a housing of the circulating valve assembly to an external annulus. Another method can include directing a fluid flow through a well tool connected in a tubular string downstream of a circulating valve assembly, thereby causing the well tool to operate, and decreasing then increasing a flow rate of the fluid flow, thereby causing the fluid flow to pass outwardly through a housing assembly of the circulating valve assembly to an external annulus. Circulating valve assemblies are also disclosed.