An addition to Stewie's answer. In case when your callback decides whether the propagation should be stopped or not, I found it useful to pass the $event
object to the callback:
<div ng-click="parentHandler($event)">
<div ng-click="childHandler($event)">
</div>
</div>
And then in the callback itself, you can decide whether the propagation of the event should be stopped:
$scope.childHandler = function ($event) {
if (wanna_stop_it()) {
$event.stopPropagation();
}
...
};