http://www.capitalforextraining.com/pro-forex-trading-strategies When stochastics is making a new low below the 20% line but prices are making a new higher low - we call that Stochastics divergence. The hit of the bottom Bollinger band at this point signifies that the market has a good chance of bouncing back in the upwards direction and if you trade this, your risk/reward ration is will in favour of reward. Let us know if you have any questions or comments below.