A lot of people adamantly feel that there is a strong relationship between price and volume and this hypothesis makes sense. However, I've never observed this, casually looking at charts and I wonder if there has been any empirical evidence presented to support this hypothesis. For example, in the attached 5 minute chart for ES last week, I highlighted the peaks in average volume and they do not appear to display any pattern that is discernable. The peak shows up when the price is peaking and bottoming, which you would expect, but also when it's moving up or down near points of resistance. In addition, I analyzed ES quotes for the past 3 months and here is what I found. I divided the data into four quartiles of volume and it produced the following means: Avg Vol. Avg Close Avg C-O 1816 1426.40 2.9% 5531 1424.65 3.2% 10423 1421.54 2.7% 34908 1419.50 -1.6% From this it would appear that when the volume is greatest, the price tends to drop on that bar and shows up when the prices are lowest, contrary to some of the opinions expressed on ET. I realize this is a limited sample, yada, yada, yada. But my question is has anybody presented any data to support the relationship between price and volume, or is this something that just "feels right?"