I am a newbie blogger. Just learnt about 3 way link exchange, but I wonder whether is it allowed to do such backlinking?? I mean what if a search engine detects this, will it penalize my website for artificial linking to my website?? Also do post any relevant link on how to do 3 way link exchange, cuz i don't know a bit about it except its name.
Search Engines highly prefer quality one way links. So focus your SEO Efforts to create quality one way links, not two way or three way. It might take some time but remember the saying, Slow and steady always win the race.
Yes, you should avoid 3 way link building as Google detects this as the spamming and might penalize your site.
I would just steer clear of this kind of linking all together. One you get into the swing of building the one way links, you will probably find it's just as quick to get these - and they're also a lot more valuable.