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

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

The broadening bottom — Bill McLaren's three-thrust wash-out low — is a structure that can mark the end of an ASX decline rather than a pause within an advance. Gary Glover's anecdotal observation, developed across his trading career and drawing on McLaren's work, is that after a nasty downtrend a stock can make a series of marginally lower lows, each rejected, before the trend finally turns. He pointed to Xero (ASX: XRO) as a live example of the pattern forming in his 14 July 2026 session. This note sits alongside the wider Bill McLaren corrective trend framework, and it is the mirror image of the 0-1-2-3 base of four consecutive higher lows — the two patterns turn a downtrend in opposite ways.

What Is a Broadening Bottom, or Three-Thrust Low?

Where the corrective trend describes a leading stock consolidating sideways before its next advance, the broadening bottom describes the opposite end of a move — the exhaustion of a decline. Gary Glover's anecdotal observation is that after a nasty downtrend a stock can make a low and bounce, then a marginally lower low and bounce, then a third marginally lower low — three thrusts down, each rejected — before the trend turns.

Gary illustrated the pattern in the 10 July 2026 session with Commonwealth Bank after the global financial crisis, which he recalled putting in a similar three-thrust, overlapping low near $24 before its recovery. The tell is often a final flush on heavy volume — a capitulation bar where sellers exhaust — followed by an absence of further downside. Gary's related observation is that the last, heaviest days of selling frequently arrive right at the low, as forced or panicked institutional sellers complete their exit and the selling dries up thereafter.

A broadening bottom does not make a stock an immediate buy. Like the corrective trend, it marks a structure to watch — confirmation still requires a reclaim of resistance on supporting volume before the turn is established. This is a practitioner observation drawing on Bill McLaren's work, not a formal study.

Xero (ASX: XRO): a live 2026 three-thrust low

Gary pointed to Xero (ASX: XRO) in the 14 July 2026 session as a live example of the pattern forming. After a decline of roughly 60%, Gary observed the stock had begun to overlap — bouncing, then making a marginally lower low, bouncing again, then another marginally lower low: three thrusts down, each rejected, in what he described as a sideways rather than a trending-down orientation. He read the behaviour as selling drying up — volumes were up, but the action had turned sideways rather than pushing aggressively lower.

The backdrop was poor sentiment. Negative news flow — including reports of executive share sales and a change to the way senior pay was linked to the share price — had weighed on the price and unsettled some institutional holders, the kind of capitulation environment in which a three-thrust low tends to form. Gary was explicit that the structure was not yet a trade: he wanted to see a move back up through the 50-day moving average first, and the stock had repeatedly broken above the line and fallen back without a clean trigger, weakening again on the latest news. These are dated session observations about how the pattern tends to unfold, not recommendations on any stock.

Broadening bottom vs the 0-1-2-3 base of higher lows

The broadening bottom is easy to confuse with the 0-1-2-3 base, because both appear after a heavy decline. They are mirror images: a broadening bottom makes marginally lower lows, while a 0-1-2-3 makes consecutive higher lows. In the 14 July 2026 session Gary read the two live — Xero making the lower-lows broadening bottom, and WiseTech (WTC) attempting the higher-lows 0-1-2-3 — a useful side-by-side because they call for different reads.

Feature	Broadening bottom (three-thrust low)	0-1-2-3 base
Sequence of lows	Three marginally lower lows	Four consecutive higher lows
What it shows	Sellers exhausting through deeper flushes	Buyers stepping in earlier each time
Trend state	Decelerating, not yet stopped	Downtrend already stopped
Gary's live 2026 example	Xero (XRO)	WiseTech (WTC)
Confirmation	Reclaim resistance on supporting volume	Reclaim the 50-day MA (ideally the second break)

The practical risk of confusing them is buying a stock that is still making lower lows in the belief it is making higher ones.

Update — 11 August 2026: Gary read WiseTech itself as a broadening bottom, and the sequencing is the point. Four weeks after the side-by-side above, Gary Glover applied the broadening-bottom label to WiseTech Global (ASX: WTC) — the stock recorded in this note as the higher-lows example. "McLaren would actually view that as a bit of a broadening bottom as well, because we've sort of had three… three thrust sort of lower." He walked the sequence: a first low in early 2026, a bounce, a marginally lower second low, another bounce back into the range, then a third.

The two readings are not in conflict — they are consecutive stages of one bottoming process on the same chart, and the table above records the 14 July reading rather than replacing it. What changed between July and August is where the bounces finish. Gary's distinction is that in a strong downtrend price either sits on the prior move or leaves spacing beneath it, and WTC had been leaving spacing all the way down. By August each bounce was carrying back above the prior low before the next marginally lower one, which is the broadening bottom completing rather than a different pattern replacing it. The higher-low behaviour the July session was waiting for is what emerges from this structure, not an alternative to it.

Volume corroborated the read for the first time. "We're actually got a pretty decent chunk of volume there the last six weeks here," Gary observed — building through the base and continuing as price came up through the channel. That is the capitulation-and-absorption tell described at the top of this note appearing on a live chart rather than in the abstract. His conclusion was comparative rather than directional: the stock "looks more interesting than quite a lot of the others." The structure still requires the reclaim on supporting volume set out above. These are dated session observations, not recommendations.

The same session separated the wider market on the volume behind each breakout rather than on structure — reading volume behind a breakout is what split gold, software and uranium into opposite trades on 11 August. A broadening bottom is still testing lower; a 0-1-2-3 has already turned its floor upward.

Watch the 10 July 2026 session this note draws on: https://www.youtube.com/watch?v=sBjLscWF6ao

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

Update — 18 August 2026: The Same Pattern Read at a Top, and Why the Roll-Off Marks the Low

The broadening structure described above is not confined to bottoms, and reading it upside down is what makes the low easier to recognise. In the 18 August 2026 session Gary Glover applied the same shape to the Dow Jones, which had conformed to a broadening pattern for an extended period and then tipped over the top of it — an overshoot he treats as a warning rather than a breakout:

"Oftentimes when a stock will sort of run across a certain range or across a resistance line, and then at the end it'll sort of overshoot there — that can actually mark the end of the move." — Gary Glover, 18 August 2026 session

He then named the inverse explicitly, which is the part that matters for a three-thrust low. A market that hugs its way down along a line and then rolls off sharply frequently finds its low at that point: "like hugging down, going down and all of a sudden you roll off and bang, you find your low." The final thrust is not a failure of the pattern — the acceleration into it is the thing that completes it.

That reading pairs with the volume test Gary applies at a marginal break: a token new low that is quickly reclaimed, with volume arriving as price recovers the level rather than as it breaks, is a false break of support rather than the start of a downtrend. That distinction is set out in full in the marginal new high test.

Source disclosure for this section: the observations above were made by Gary Glover (AR 259215), Authorised Representative of Novus Capital Limited (AFSL 238 168), during a recorded Finer Market Points session on 18 August 2026. They reflect Gary Glover's general approach and his anecdotal observations developed across his trading career — general commentary only, not a formal study, not financial advice, and not a recommendation to trade any security. They were made in the course of that session and not in response to any individual's circumstances. Content has been edited and summarised by Finer Market Points for educational purposes.

Update — 25 August 2026: How to Tell a Broadening Top Early — the Pullbacks Get Bigger, Not Smaller

The broadening structure has a measurable tell, and it is the direction the pullbacks are travelling. In the 25 August 2026 session Gary Glover applied the pattern to the S&P/ASX 200 (XJO) — a market that had broken out of a tight diamond consolidation during reporting season, made a marginal new high, and then fallen back inside its old range as reporting season ended.

Rather than read the diamond as a completed breakout, Gary Glover cleared the older trend lines off the chart and re-drew the ranges from scratch. What emerged was the broadening shape described above, inverted:

"This is now sort of got the appearance of a broadening pattern here, which is a little bit of a concern there, because you don't want to see a broadening sort of top here." — Gary Glover, 25 August 2026 session

What separates a broadening top from an ordinary consolidation?

The diagnostic is not the new high. It is what each successive pullback measures.

"You can see those contractions are getting larger. So yeah, we're going to new highs. But each time we pull back, it's quite a large range. And then we're coming back again. So if this comes back, it's going to contract again back down outside — that's the concern there, with those contractions actually growing." — Gary Glover, 25 August 2026 session

Read against a healthy base, that is the exact inversion. A base that is working produces pullbacks that get shallower as it matures — the contraction sequence a trader looks for in a volatility-contraction pattern. A broadening top produces the opposite: each retracement is wider than the last, so the structure is releasing volatility rather than storing it. The new high is real; the shrinking-pullback confirmation that normally accompanies one is absent.

The same session read the Dow Jones as having overshot the top of its own range — the overshoot-as-exhaustion tell set out in the 18 August update above — while the ASX 200 was already back inside its range. Two indices, the same broadening family, at different points in the sequence.

This reading sits alongside the longer cycle context in FMP's midterm cycle guide for ASX traders, which covers the seasonal window this observation falls inside.

Source disclosure for this section: the observations above were made by Gary Glover (AR 259215), Authorised Representative of Novus Capital Limited (AFSL 238 168), during a recorded Finer Market Points session on 25 August 2026. They reflect Gary Glover's general approach and his anecdotal observations developed across his trading career — general commentary only, not a formal study, not financial advice, and not a recommendation to trade any security. They were made in the course of that session and not in response to any individual's circumstances. Content has been edited and summarised by Finer Market Points for educational purposes.

Frequently Asked Questions

What is a three-thrust low?

A three-thrust low, also called a broadening bottom, is a structure Bill McLaren described in which a declining stock makes three marginally lower lows, each followed by a bounce, before the downtrend turns. Gary Glover's anecdotal observation is that a final flush on heavy volume — a capitulation bar — often accompanies the last low, after which the selling dries up.

Does a broadening bottom mean it is time to buy?

No. A broadening bottom marks a potential end to a decline, but it is a structure to watch rather than a buy signal. Confirmation still requires the stock to reclaim resistance on supporting volume before a trader treats the turn as established.

Is Xero forming a broadening bottom?

In his 14 July 2026 session, Gary Glover observed Xero (ASX: XRO) making a three-thrust, overlapping low after a roughly 60% decline — three marginally lower lows in a sideways orientation, with volume up but selling drying up. He was explicit it was not yet a trade: he wanted to see a reclaim of the 50-day moving average first, and the stock had broken above and fallen back without a clean trigger. This is a dated session observation, not a recommendation.

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

They are mirror images. A broadening bottom makes three marginally lower lows — the downtrend is decelerating but has not yet stopped. A 0-1-2-3 base makes four consecutive higher lows — the downtrend has already stopped and the floor is rising. Both can precede a turn, but confusing them risks buying a stock that is still making lower lows in the belief it is making higher ones.

Sources

#	Source	Type
1	Gary Glover (AR 259215), Novus Capital. FMP session, 10 July 2026.	Practitioner session
2	Gary Glover (AR 259215), Novus Capital. FMP session, 14 July 2026 (https://youtu.be/YQJ8SCb0ZGY).	Practitioner session
3	Bill McLaren — broadening bottom / three-thrust concept (referenced by Gary Glover, 10 July 2026 session).	Session reference

All Gary Glover observations in this article are anecdotal practitioner observations developed across his trading career — not formal studies.

Related Finer Market Points Educational Resources

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

• Bill McLaren's Corrective Trend Framework — Christopher Hall

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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).

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.