In examining the three lines in the fan principle, 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 usually have three major phases (Dow Theory and Elliott Wave Theory); there are three kinds of gaps (to be covered shortly); 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.