Yes, you probably would want to change your sort to sort by date modified. Then you can use conditional formatting to hide all but the first three rows. The formatting condition goes on the repeating row or section, and will be something like this (right click the repeating SharePointListItem data node in the fields task pane and select "copy XPath" to ensure you have the right namespace prefix and node name - yours may not be the same as mine):
count(preceding-sibling::d:SharePointListItem_RW) > 2
Count of preceding sibling returns 0 for the first row, one for the second, two for the third - so the above formula should hide all but the first three rows. Make sense?