Rainbow Obsidian gets its name from the chatoyant, rainbow effect of light refracting off of tiny air bubbles inside the stone. It is made up of volcanic glass. Rainbow Obsidian can help to alleviate fears at home/work that seem to overwhelm, or that we find we cannot overcome. It also can reverse a stint of bad luck and bring happiness and joy to the user.
In general, Obsidian is a very grounding and protective stone. It is used as a great cleanser of negative energies, helping to remove not only negativity experienced in the environment, but also that of one's own emotions, such as anger, jealousy, greed, resentment, etc. Obsidian is often used for healing and releasing energy blockages, and has a tendency to work quickly to move truths to the surface to be resolved.