The following excerpt is from Chapter 4 of David Aronson's recently published book "Evidence-Based Technical Analysis". Together with Chapters 5 and 6 of the book (which will be available as excerpts later) it addresses aspects of statistics that are particularly relevant to evidence-based (as opposed to subjective) technical analysis.
Statistics is the science of data. In the late nineteenth century, renowned British scientist and author H.G. Wells (1866-1946) said that an intelligent citizen in a twentieth-century free society would need to understand statistical methods. It can be said that an intelligent twenty-first-century practitioner or consumer of TA has the same need.
Statistical methods are not needed when a body of data conveys a message loudly and clearly. If all people drinking from a certain well die