Absolute And Relative Addressing
When you define a name, Excel defaults to using absolute cell references: Sheet1!$A$1. The dollar signs indicate that the address should be interpreted absolutely, independent of the cell that calls the name.
You can also use relative references however, giving you interesting possibilities.
If for example you select cell C3 on Sheet2 and define a name as =Sheet2!A1 (See Fig. 7), Then this name will point to a cell two columns to the left and two rows up from the cell the name is used in.
Fig. 7, Defining a relative name
So the formula =Relative in cell C14 on Sheet2 will point to cell A12 (see Fig. 8).
Fig. 8: Example of a relative reference in a name