Why we care: Over the past 40 years, the index has been a reliable leading indicator of peaks in total nonfarm payroll employment but a coincident and sometime lagging indicator of business cycle and labor market lows. (investinginbonds.com)
The other problem with lagging indicators like MACD and moving averages is that they will chop you to pieces in consolidating markets; firing off buy and sell signals just as the market is about ready to reverse and re-test the other side of the trading range or consolidation area. (learntotradethemarket.com)
Traders often combine lagging indicators as well, like the stochastic oscillator, RSI, MACD, etc., in search overbought / oversold conditions or even hidden divergence occurring at these specific Fibonacci levels. (fxdayjob.com)