The 0-1-2-3 Base: How Gary Glover Reads Four Consecutive Higher Lows for an ASX Bottom

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | Updated July 2026

Analysis sourced from Gary Glover (AR 259215), Authorised Representative, Novus Capital Limited (AFSL 238 168)

The 0-1-2-3 pattern is a base of four consecutive higher lows — a numbered count Gary Glover uses to identify the moment a beaten-down ASX stock stops making lower lows and begins to edge higher. The "0" marks the pivot low that ends the fall, and the "1", "2" and "3" each mark a higher low that holds above the one before. It is a specific bottoming structure, not a general one: not every base produces a 0-1-2-3, in the same way not every consolidation forms a VCP or a cup-and-handle. Gary Glover (AR 259215), Authorised Representative of Novus Capital Limited (AFSL 238 168), who reviews ASX momentum stocks in a recorded weekly session with Finer Market Points, used WiseTech Global (ASX: WTC) as a live example of a 0-1-2-3 attempting to build in his 14 July 2026 session. This guide explains what the pattern is, how to find one and what to look for, why the 50-day moving average confirms the entry, why the risk/reward appeals to momentum traders, and how the 0-1-2-3 differs from the broadening bottom it is often confused with.

What is the 0-1-2-3 pattern?

The 0-1-2-3 is Gary Glover's shorthand for a base of four consecutive higher lows — a numbered count of the sequence that turns a downtrend into a bottom. The "0" is the pivot low that ends the decline; each subsequent number marks a higher low that holds above the last. Once four higher lows are in place, the stock is no longer making lower lows — the defining behaviour of a downtrend has stopped, and a base has begun to form.

The pattern lives inside a broader idea in momentum literature. Stan Weinstein's stage analysis frames the turn as the transition from a Stage 1 basing area into a Stage 2 advance, and Mark Minervini and William O'Neil describe the same precondition — a stock making higher highs and higher lows before it becomes a leader. The 0-1-2-3 is more specific than that. It is a particular shape a base can take, in the same way the VCP and the cup-and-handle are particular shapes: they appear in the same basing environment, but not every base forms one. A stock can grind sideways for months and never print a clean sequence of four higher lows. When it does, Gary has a defined structure to work with rather than a vague "it looks like it's basing."

The 0-1-2-3's value — and its risk — is that it is early. It tells you the character of the tape has changed before the stock has proven anything with a breakout. Learning to recognise it is what lets a trader be early with a defined risk rather than early on a hunch.

How to find a 0-1-2-3 pattern: what to look for

Finding a 0-1-2-3 starts with hunting in the right place, then counting the lows — the pattern only means something in a stock that has been going down. Gary's method breaks into a short sequence of things to look for.

1. Start with beaten-down names, not leaders. A 0-1-2-3 forms in a stock that has been under real pressure — trawling along its lows after a strong decline. The universe to scan is the sold-off end of the market: former growth names that have de-rated, sectors that have been cooling, the dogs of the ASX. Looking for a 0-1-2-3 in a stock that is already surging is a category error — that is the opposite environment.

2. Find the pivot low, then count the higher lows. Mark the low that appears to end the fall — the "0". Then ask a single question of each subsequent pullback: did it bottom above the previous low? If low 1 is higher than 0, low 2 higher than 1, and low 3 higher than 2, you have four consecutive higher lows and the pattern is in place. The count is literal — you are tracing a rising floor, one swing low at a time.

3. The floor must hold — an undercut breaks the count. This is the non-negotiable condition Gary stressed. The moment a prior swing low is undercut and the stock stays below it, the sequence is broken and the base has failed. Holding those higher lows in place is the primary thing to watch; a base that keeps its floor is doing constructive work, one that loses a prior low has told you the sellers are not finished.

4. Watch volume and range for accumulation. As the higher lows build, Gary looks for volume to build with them — a sign of accumulation rather than a dead, drifting chart — and for the range to tighten as the base matures. A tightening range near the top of the base, followed by a small range break, is the configuration he flagged as the point a trade can appear.

5. Confirm, don't anticipate. The higher lows tell you the downtrend has stopped; they do not yet tell you it has turned. Confirmation comes from the 50-day moving average, covered in the next section. Buying before the higher lows have proven they will hold converts a defined-risk setup into a guess.

This is a screening habit, not a one-off. The same beaten-down cohort is worth revisiting week to week, because a 0-1-2-3 that fails one month can re-form the next — the absence of new lower lows is the signal that keeps a name on the list.

How does the "0" low form?

In practice the pivot low often prints on a heavy-volume washout — but that is one way a 0-1-2-3 begins, not a requirement. In the 14 July 2026 session, describing WiseTech, Gary sketched the sequence he had seen in that stock: a strong downtrend, a stretch of sideways action, a roll-over that looked bleak, and then a last, large-volume wash-out bar that can end the decline. The tell in that case was the volume — a spike as the last sellers capitulated, which Gary reads as a change of hands at the bottom. It maps onto the Wyckoff idea of a selling climax followed by accumulation: a downtrend ending not with a whimper but with a high-volume flush, after which larger buyers quietly absorb stock.

That washout is worth recognising because it is common — but a 0-1-2-3 does not depend on it. Some pivot lows form quietly, with selling simply drying up rather than climaxing on a single dramatic bar. What defines the pattern is the four higher lows that follow, however the "0" was made. The washout is a feature of this case study; future examples will show the other ways the low can form.

How long does a 0-1-2-3 base take to form?

There is no fixed duration — Gary's observation is that some 0-1-2-3 bases take months to build while others set up in a matter of weeks. He contrasted the two: sometimes a stock bases for a long stretch before the higher lows line up; other times, as after a deep and fast market pullback, the pattern sets up quickly and the stock kicks on. He pointed to the sharp market low around April 2025 as an example of the fast version — a deep, aggressive pullback that washed out and then set up a 0-1-2-3 quickly before running.

The pattern is defined by structure, not by a stopwatch. What qualifies a base is the sequence of higher lows and the behaviour of volume through it — not whether it took six weeks or six months. This is the same principle behind Bill McLaren's corrective-trend framework, where the absence of new swing lows — not elapsed time — is the signal that a consolidation is constructive rather than terminal.

Why does the 50-day moving average confirm a 0-1-2-3 entry?

A 0-1-2-3 base tells you the downtrend has stopped; reclaiming the 50-day moving average is what tells Gary momentum has turned. For momentum stocks he treats trading back above the 50-day as an important confirmation that the base is maturing into something actionable — the higher lows establish the floor, and the 50-day reclaim signals the buyers have taken control of the trend.

Gary's preferred sequence is not the first touch but the retest that follows it. In the 14 July 2026 session he described the ideal as a first break above the 50-day, then a pullback that holds, then the entry on that second attempt — the same logic set out in the second break of the 50-day moving average as a stronger ASX entry and in how Gary uses moving averages to time momentum entries. A stock that breaks above the 50-day, falls back below, breaks above again and falls back again — flatlining across the line without resolving — has not yet given the clean second-break trigger. That was precisely Gary's read of WiseTech on 14 July: building higher lows, but flatlining around the 50-day without a trigger yet.

WiseTech: a live 0-1-2-3 attempt in July 2026

Gary's worked example was WiseTech Global (ASX: WTC) — a software name that fell roughly 69% across FY2026 and, on 14 July 2026, was attempting to build a 0-1-2-3 base. It fit the profile point by point: a beaten-down name trawling its lows, a bleak-looking roll-over, then a large-volume wash-out that set the "0", followed by early signs of stabilisation and accumulation on rising volume. But the base was still proving itself — the stock had come back slightly lower than Gary had hoped the prior day, and was holding tight and flatlining around its 50-day rather than kicking on. Higher lows attempting to build, no confirmed trigger.

WiseTech is not the first time Gary has flagged the pattern. In his 2 June 2026 session, discussed in how Gary Glover identifies Nasdaq resistance levels, he noted several ASX technology names — Xero (XRO), Pro Medicus (PME), Block (SQ2), Zip Co (ZIP) and Tyro Payments (TYR) — producing "zero, one, two, three patterns" of narrow, declining-volume price action that signalled exhaustion of selling rather than continuation lower. That two-session consistency is the point: the 0-1-2-3 is a repeating structure Gary applies across the beaten-down growth cohort, not a one-off label.

The most powerful configuration, in Gary's framing, is when a 0-1-2-3 base coincides with two independent signals: the stock appearing on the FMP Launch Pad and its sector or thematic rising in relative strength. When a bottoming structure lines up with early relative strength and a thematic tailwind, the setup has confirmation from more than the price pattern alone. These are dated session observations about how the pattern tends to unfold, not recommendations on any stock.

What makes the risk/reward on a 0-1-2-3 setup attractive?

Gary's reason for liking the 0-1-2-3 is structural: the entry sits right on top of a defined floor, so a failure is cheap and a success is large. Because the trade is taken as the higher lows tighten near the base, the stop sits just under the most recent higher low — a narrow, well-defined distance. If the pattern fails, the loss is small and quickly known. If it works and the stock moves out of its base, the upside from a bottom is typically far larger than the risk taken to enter. That asymmetry — tight risk, large potential reward — is what Gary singled out as the appeal of the setup.

The discipline that protects the asymmetry is patience about the entry. In a choppy, headline-driven market where breakouts frequently fail to follow through, the higher-probability approach is to wait for the base to tighten and the 50-day to be reclaimed rather than to buy early — the same caution set out in Gary's adjustments for a hard-penny market.

How is a 0-1-2-3 bottom different from a broadening bottom?

*The two patterns look similar — both appear after a heavy decline — but they are mirror images: a 0-1-2-3 makes higher lows, while a broadening bottom makes marginally lower lows.* The distinction is the whole signal:

Both are constructive bottoming structures, and both can precede a strong move — the broadening bottom, McLaren's three-thrust wash-out low, resolves upward once the selling dries up, just as a 0-1-2-3 does. But they are read differently: a 0-1-2-3 confirms the floor is rising, whereas a broadening bottom is still testing lower before it turns. Confusing the two leads a trader to buy a stock that is still making lower lows in the belief it is making higher ones.

One further point of confusion is worth clearing up. Gary also uses the "0-1-2-3" label inverted, at a top — a topping variant where the sequence describes a market rolling over rather than basing. That topping application is a separate signal, discussed alongside how moving averages flag momentum exhaustion. This article is concerned only with the bottoming version: four higher lows after a beaten-down stock stops falling.

Conclusion

The 0-1-2-3 pattern is a base of four consecutive higher lows — a specific bottoming structure, not every base, in the way a VCP or cup-and-handle is a specific shape. To find one, hunt in beaten-down names trawling their lows, mark the pivot low, and count: each successive low must print above the last, and the base fails the moment a prior swing low is undercut and holds. Volume should build and the range should tighten as the higher lows form, and the turn is confirmed — not anticipated — by a reclaim of the 50-day moving average, ideally on the second break. The appeal is the asymmetry: a tight, defined risk under the last higher low against a large potential move out of the bottom. WiseTech was Gary's live 14 July 2026 example of a 0-1-2-3 still proving itself, flatlining around its 50-day without a trigger. The signals worth watching from here are whether the higher lows keep holding, whether volume builds as the base tightens, and whether a 50-day reclaim arrives to confirm the turn. Gary Glover's weekly Finer Market Points sessions — where setups like this are reviewed in real time — reach FMP YouTube Momentum Profile members first.

The analysis in this article draws on Gary Glover's recorded Finer Market Points session of 14 July 2026, and on the base-building literature documented by Stan Weinstein, William O'Neil, Mark Minervini and Richard Wyckoff. The FMP Momentum Profile is published daily, and Gary Glover's weekly session recordings review ASX momentum stocks and the setups discussed here in real time — FMP YouTube Momentum Profile members receive early access to the educational data that forms the basis of articles like this one. For information on FMP YouTube Momentum Profile membership, visit the FMP YouTube membership page.

Remember that past performance is no guarantee of future results, and all trading involves risk.

Frequently Asked Questions

What is the 0-1-2-3 pattern in trading?

The 0-1-2-3 pattern is Gary Glover's shorthand for a base of four consecutive higher lows that forms as a beaten-down stock stops making lower lows and begins to edge higher. The "0" marks the pivot low that ends the fall; each subsequent number marks a higher low that holds above the last. It is a specific bottoming structure — not every base forms one, in the same way not every consolidation forms a VCP or a cup-and-handle.

How do you find a 0-1-2-3 pattern?

Start in the right universe — stocks that have been under real pressure and are trawling along their lows, not stocks already surging. Mark the pivot low ("0"), then check each subsequent pullback: if low 1 is higher than 0, low 2 higher than 1, and low 3 higher than 2, you have four consecutive higher lows. The base fails the moment a prior swing low is undercut and holds. As the higher lows build, look for volume to build with them and the range to tighten, then confirm with a reclaim of the 50-day moving average rather than anticipating it.

What is the difference between a 0-1-2-3 bottom and a broadening bottom?

They are mirror images. A 0-1-2-3 makes four consecutive higher lows, showing buyers stepping in earlier each time — the downtrend has already stopped. A broadening bottom (McLaren's three-thrust wash-out low) makes three marginally lower lows, showing sellers exhausting through progressively deeper flushes — the downtrend is decelerating but not yet stopped. Both can precede a strong move, but a 0-1-2-3 confirms a rising floor while a broadening bottom is still testing lower.

Does a 0-1-2-3 always start with a heavy-volume washout?

No. The pivot low often prints on a heavy-volume washout — a selling climax, in Wyckoff terms — and that is what Gary observed in WiseTech. But it is one way the low can form, not a requirement. Some pivot lows form quietly, with selling simply drying up. What defines the pattern is the four higher lows that follow, however the low was made.

Why does the 50-day moving average matter for a 0-1-2-3 setup?

The higher lows tell you the downtrend has stopped, but reclaiming the 50-day moving average is what signals momentum has turned. For momentum stocks, Gary treats trading back above the 50-day as an important confirmation that a base is maturing into an actionable setup. He prefers the second break — a first move above the 50-day, a pullback that holds, then entry on the retest — over the first touch, which more often fails.

How long does a 0-1-2-3 base take to form?

There is no fixed duration. Gary's observation is that some 0-1-2-3 bases take months to build while others set up in weeks, particularly after a deep and fast market pullback. The pattern is defined by structure — a sequence of higher lows with volume building through the base — not by elapsed time.

What makes the risk/reward on a 0-1-2-3 setup attractive?

The entry sits on top of a defined floor. The stop sits just under the most recent higher low, so a failure is a small, quickly-known loss, while a successful move out of a bottom is typically far larger than the risk taken. Gary singled out this asymmetry — tight risk, large potential reward — as the appeal of the setup, provided the trader waits for the higher lows to prove they hold rather than buying early.

Is WiseTech a confirmed 0-1-2-3 trade right now?

No. In his 14 July 2026 session, Gary Glover described WiseTech Global (ASX: WTC) as attempting to build a 0-1-2-3 after a roughly 69% FY2026 decline, but noted it had come back slightly lower than he had hoped and was flatlining around its 50-day moving average without a trigger. That is a base still proving itself, not a confirmed setup. These are dated session observations, not recommendations — traders unsure how this applies to their circumstances may wish to speak with a qualified financial adviser.

Sources

All Gary Glover observations in this article are anecdotal practitioner observations developed across his trading career — not formal studies. The 0-1-2-3 label is Gary Glover's own; the base-building, selling-climax and higher-lows concepts it aligns with are attributed to the documented authors above.

Related Finer Market Points Educational Resources

• The Broadening Bottom: McLaren's Three-Thrust Wash-Out Low on the ASX — Christopher Hall

• The Second Break of the 50-Day Moving Average: A Stronger ASX Momentum Entry — Christopher Hall

• Moving Averages for ASX Momentum Stocks — Christopher Hall

• Bill McLaren's Corrective Trend Framework — Christopher Hall

• What is a VCP Pattern? — Christopher Hall

• Cup & Handle Patterns on the ASX — Christopher Hall

• Relative Strength as a Leading Indicator for ASX Momentum Traders — Christopher Hall

• The Hard Penny Market: Gary Glover's Two Adjustments for Trading ASX Momentum — Christopher Hall

Analysis attributed to Gary Glover (AR 259215) reflects his anecdotal observations developed across his trading career, shared in a recorded weekly session with Finer Market Points. It is general commentary, not personal financial advice, and is not a formal study. Gary Glover is an Authorised Representative of Novus Capital Limited (AFSL 238 168).

This article is based on analysis and commentary provided by Gary Glover (AR 259215), Authorised Representative of Novus Capital Limited (AFSL 238 168), during a recorded market analysis session on 14 July 2026. Content has been edited and summarised by Finer Market Points for educational purposes. Gary Glover has not independently reviewed or endorsed this publication.

Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results. Consider your financial situation and seek professional advice before making investment decisions.

Finer Market Points Pty Ltd, CAR 1304002, AFSL 526688, ABN 87 645 284 680. This general information is educational only and not financial advice, recommendation, forecast or solicitation. Consider your objectives, financial situation and needs before acting. Seek appropriate professional advice. We accept no liability for any loss or damages arising from use. Authors and presenters may hold positions in discussed companies and investment products.