Ask Colin

I've come across charts where PRICE and OBV continue to rise in an uptrend but at the same time volume is falling steadily.Why is this? Also which is more reliable - OBV or VOLUME?

OBV can rise when volume is falling provided the balance of volume is on up days. Neither naked volume or OBV are more important than the other. They are telling you different things. Naked volume is telling you how committed the buyers or sellers are. OBV is telling you who is doing most of the trading.

Keywords: