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In this video tutorial, Prajita from Excel Jams demonstrates how to create dynamic chart titles in Excel. By simply clicking on the chart title, going to the formula bar, and selecting the desired cell, you can make your chart title dynamic. This allows for easy updating of the chart title when changes are made to the source data. By selecting multiple cells, you can create a combination for your chart title, making it more informative. This feature enables the chart title to automatically update when changes are made to the selected cells.