Standard deviations and bell curves are used to understand how point and figure charts typically behave, with prices falling within a band around the middle two-thirds of the time, though extreme over-buying or over-selling can occur outside of this range. While these concepts provide insight into entry and exit points, they do not change the overall trend or direction of the market. The podcast cautions listeners against relying on its content alone for investment advice and recommends consulting an advisor before making investment decisions.