The Regular Divergence (1)

FX:NZDUSD   New Zealand Dollar / U.S. Dollar
Stock price is lower low, but indicator is higher low. This divergence can be a trading opportunity.

This is forex, not a stock. But the tips should apply as well.
2014 apr 28, price and stochastic have divergence.
Stochastic is to value price momentum. Use 8,3,3 as the parameter can wipe out some market noise.
The divergence is a regular divergence. Over 200 ma, should have bias of doing uptrend. Hence, for regular divergence, should only trade when price is lower low, but indicators is higher low.
If below 200 ma, should be reverse, which is for regular divergence, should only trade when price is higher high, but indicator is lower high.
The price also dropped on 50 ma, more probable to bounce back.
Stochastic works only for a range price move. For strong trend, not working. Here the value is about 20, and not in a strong trend swing, means oversold. More probable to bounce back.
There is also a horizontal support below the price.
Over all these, a strong buy hint is here.