Absolutely, cell referencing is essential for creating dynamic charts in Excel. It allows the chart to update automatically whenever the data it represents changes. Here's how it works:

1. Data and References: You'll have your data set in a specific range of cells. Instead of directly selecting this range for the chart, you'll use cell references to define that range.

2. Formulas: Within the chart definition, you can use formulas that reference specific cells or ranges. These formulas can determine the series, categories, or chart elements based on your data.

3. Dynamic Updates: Whenever you add, remove, or modify data within the referenced range, the chart will automatically update to reflect those changes.

Here are two common ways to use cell referencing for dynamic charts:

* Named Ranges: You can create named ranges for your data sets. These names become easy-to-use references within the chart definition, improving readability and maintainability.

* Formula-Based Ranges: You can use formulas like OFFSET or INDEX/MATCH to define the chart's data range dynamically. This is useful when your data isn't in a simple rectangular block or needs to adjust based on specific criteria.

By leveraging cell referencing, you can create charts that are always up-to-date and directly linked to your data. This saves time and ensures your charts accurately represent your evolving information.