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It allows you to move the chart. Depending on where you click exactly, you can pick up the chart and then drag it to a new location. This only works if you are in an embedded chart. It does not do anything on a chart sheet. You can also move the plot area within the chart area on both an embedded chart or a chart on a chart sheet, when you click at the top or on any part on the plot area.

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Q: What does clicking and dragging top of chart do in Excel?
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