“Why is it three act structure? The cycle of life.”

Story structure and the… stock market? Read on.

“Why is it three act structure? The cycle of life.”

Story structure and the… stock market? Read on.

Story structure is a never-ending area of interest for me and judging from previous discussions also for Go Into The Story readers. So I was intrigued when I read this email from Chris:

Hi Scott,
First, thank you for the blog. I’ve been reading for a long time and have really learned a lot from it.
You might say you inspired me to start putting my own thoughts in a blog.
I wrote a post on structure and the stock market. My hope is that it could help writers with structure by looking at it through a different lens.
I would love to know your thoughts.

Here’s a key excerpt from Chris’s post:

Aristotle’s Poetics has long been considered the bible of storytelling. Aristotle applied to stories an absolute truth to all life, there is a beginning, middle, and end. I believe the idea of a life cycle permeates everything known to us in the universe. Alright, this post isn’t going to be a discourse in philosophy, I’ll stick to story.
While some writers, and teachers, of screenwriting will vehemently say you should forget about the concept of three act structure, I believe this would be the greatest mistake any budding writer could make. Three act structure is simply a way to define the life cycle in screenwriting terms. If you remove the cycle of life from your story, you remove any chance of writing a great story.
To prove my premise, I’m going to use my other passion I have mentioned before on this blog, financial markets. The beauty of financial markets is they’re built by humans making them also at the mercy of life cycles. A theory has been created to articulate this called Elliott Wave Theory. Below is an image courtesy of Elliott Wave International that shows standard Uptrend(1) and Correction(2) waves in a market.
Don’t worry. This isn’t as confusing as it might look. For the purposes of the stock market, each line represents a movement in price. So line 1 is price going higher, line 2 is price going lower, line 3 higher, etc.

For all you number-oriented folks, I think you’ll enjoy Chris’s post. My simple variant is this:

Beginning: You buy a stock.
Middle: You own a stock.
End: You sell a stock, either for a loss (Tragedy) or a gain (Comedy)

No matter all the various structural theories or screenplay paradigms, I still believe in those three movements: Beginning, Middle, End. Here’s an excerpt from one of my earliest lectures for an online screenwriting course from 2002:

Think about the rhythms of life:
Wake up — go to work — come home
Toothpaste on toothbrush — brush — rinse
Foreplay — sex — pass out
Think about sentences:
Subject — Verb — Object
Think about music:
Classical sonata form: Exposition — Development — Recapitulation
Verse/Chorus — Verse/Chorus/Bridge — Verse/Chorus
It’s the “Three Factor.” And it’s everywhere in life. With two, you can’t establish a pattern. But you can with three.
Three strikes, and you’re out.
The Holy Trinity: Father, Son, and Holy Ghost.
Jokes almost always have three: Line, line, punch-line.
The Three Factor, as in Beginning-Middle-End.

Yes, you can have four acts, eight sequences, twenty-seven plot points, however many story beats, and so on. But at the heart of any story there are three passages that I believe are innate to narrative, and something that readers and viewers expect to be there: Beginning, Middle, End.

And per Chris, evidently the stock market is yet another illustration of that pattern.

It seems like every time I post something on story structure, it spawns a lively discussion. So have at it, Go Into The Story readers. What say ye about Beginning, Middle, End?

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