Trend lines are very important in point & figure analysis. The saying that ‘the trend is your friend’ is certainly true.
The Bullish Support Line
Stocks above their bullish support line should be assumed to be in long term uptrends.
The line does not connect points and can therefore be drawn immediately when an uptrend begins. It is drawn from the lowest point made after the completion of a bear trend or a significant down move. It is always drawn at a 45 degree angle, intersecting ascending corners of the squares on the chart.
Long positions should be considered while the stock is above the bullish support line.
A break of a bullish uptrend line (that has been in place for a considerable amount of time) is considered to be a bearish event.