The article is complete right, but forgets to mention the field it's applied at mostly: Scriptwriting for movies. Old drama theory (with the 3 basic arc's) plus the three outer ones is nowadays only used in scriptwriting scientifically. 0, 1, 01, 10, 010 and 101 is still the basis for all arcs, combined with the 6 main genres you can easily predict its market value. I think it was Relativity Media's Ryan Kavanaugh (the movie production and financing studio) which brought that to perfection, together with the popularity of the main cast, which is much more important than the script arc and the genre.

He used the moneyball approach to movies, as Daryll Morey does it in Basketball. https://en.m.wikipedia.org/wiki/Ryan_Kavanaugh Of course Kavanaugh also dabbled in the sports agency business, because it was the same data driven approach.

previous discussion was about how this just iterates through all possibilities I think.

If there is a maximum of 3 movements and it can either fall (0) or rise (1) (and rise rise would simply be described as rise) that you are left with: 0, 1, 01, 10, 010, 101.