Does 3 way linking really work?

I have come across a method of linking called 3 way linking.

It is new to me and was wondering if anyone else has heard of it and if so does it work?

 

...wow you need to do some thread surfing

I would compare this question to:
Is organic traffic a good way of getting traffic?

 

if you are into link exchanging, than 3 way linking is way better than just regular link exchange