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Referencing is basically referring to another cell in a formula. There are 3 types of cell addressing or cell referencing mechanisms in Excel. They are relative, mixed and absolute. Relative is typing the address as it is in the cell. When the formula is copied, the reference in subsequent formula changes accordingly. With absolute and mixed referencing you are preventing the cell reference from partially or fully changing in the formula when it is copied. This is done by putting a dollar before the cell's column or row, for mixed referencing, and before both parts for absolute referencing.

A1 - Relative: The cell address will change when copied in a formula.

$A1 - Mixed: The cell address column will not change when copied in a formula.

A$1 - Mixed: The cell address row will not change when copied in a formula.

$A$1 - Absolute: The cell address will not change when copied in a formula.

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