Yea it's true that reciprocal links are given importance by the search engines and they also help in increasing one's
website hosting traffic. The reciprocal links can also get better results for the
website hosting if the links are of the same interest to the viewers as they would be more interested in that sort of links and not just any other links which are of no or mere relevance.
There is this new and unique concept of three way linking which also comes in the category of reciprocal linking but it is given more importance compared to the normal way of reciprocal linking and at the same time it is getting very much popular among the mases due to its acceptance and the level of priority given to them by some search engines.
Example: Suppose there are three
website hostings X,Y and Z. So X linking to Y. Y linking to Z and Z linking to X is a type of three way reciprocal linking.
In this style of link building it is tried to present more natural links in the process of Search Engine Optimization and actually what the search engines are looking for which makes this linking process advanced than the normal reciprocal linking. To sum it up i guess that reciprocal linking is a good way to gain better results but it should be done with caution.