This is the position with three subtypes. Each of them is a Perceptual Position outside the first two, and outside the communication loop going on between first and second positions. From third position, you are like an interested, but not directly involved observer of the other two. In third position, if you were to refer to yourself in first or second position, you'd use third person pronouns such as "he", "she" or "they"

The third position is one of neutral observer – this position is all about noticing other people involved but looking at all that is going on from a neutral stand, without much emotional involvement and without being tangled in our own (or other persons) needs.

In the third position you see and hear yourself and others outside of you as if on a theatre stage. The third position allows a bit of distance and clarity but also better understanding of the relationship that is playing our between the people involved.

This third position is useful if when you want to shift from emotionally charged experiences to get an objective view. It is also useful for stepping back and getting insights into situations and seeing and hearing the bigger picture. It's a useful position for gathering information and noticing relationship dynamics going on between them.

It is a detached position, in which we are experiencing the situation in indirect way.

Someone, who lives in third position, would be seen as rather aloof and a disinterested observer of life—always on the outside looking in.