Volume is rising. What is OBV telling you?NVIDIA CorporationBATS:NVDAInvestradeWhy can a small price move make the OBV line jump? Welcome back to @Investrade Chart Basics: one chart, one concept, one thing to try. On Balance Volume, or OBV, keeps a running total of volume. If today's close is higher than the previous close, it adds today's volume. If today's close is lower, it subtracts today's volume. If the closes match, the total stays the same. The size of the price change does not determine how much OBV moves. A tiny gain on a high-volume day can add more to the line than a much larger gain on a quieter day. On the NVDA chart, compare the close-to-close direction with the volume bar before interpreting a move in OBV. OBV is a calculation based on closing-price direction. It does not measure actual buy orders minus sell orders, and it does not reveal what happens next. Try it: Pick one day with an unusually tall volume bar. Did the close finish above or below the prior close? Predict whether OBV should rise or fall, then check the line. Follow Investrade for tomorrow's lesson: the same volume viewed by price level instead of by day. For educational purposes only. The security shown is an illustration, not a recommendation to buy or sell. Past performance does not guarantee future results. Investing involves risk, including loss of principal.