The following is a quote from John Murphy's book Technical Analysis of the Futures Markets:
"It's interesting to note how often the number three shows up in the study of technical analysis and the important role it plays in so many technical approaches. For example, the fan principle uses three lines; major bull and bear markets have three phases (Dow theory and Elliott Wave Theory); there are three kinds of gaps some of the more commonly known reversal patterns, such as the triple top and the head and shoulders, have three prominent peaks; there are three different classifications of trend
(major, secondary, and minor) and three trend directions (up, down, and sideways); among the generally accepted continuation patterns, there are three types of triangles-the symmetrical, ascending, and descending; there are three principle sources of information-price, volume and open interest. For whatever the reason, the number three plays a very prominent role throughout the entire field of technical analysis."
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