When should a trader buy according to TRIX signals?

The TRIX (Triple Exponential Average) indicator is a momentum oscillator that compares the rate of change of a triple smoothed exponential moving average. It is primarily used to identify potential buy and sell signals in a trading strategy.

Buying when TRIX crosses above 0 or rises for 2-3 periods serves as a confirmation of upward momentum. A rising TRIX indicates that the price is gaining strength, suggesting a bullish trend. When TRIX crosses above 0, it signifies that the underlying momentum has turned positive, providing a potentially favorable entry point for a trader looking to take a long position. Additionally, observing the TRIX rising for two to three periods can help confirm that the trend is sustaining itself and is not a fleeting spike, thus reducing the risk of entering a trade too early in a potential reversal.

The other options do not provide a reliable signal for buying. A cross below 0 typically suggests bearish momentum, while a consistent decline or stagnation in TRIX would indicate a lack of upward traction in the market, generally leading to a cautious approach. Hence, the conditions outlined in the chosen option are aligned with the principles of trend confirmation and momentum trading.