Creating a List in which Each Number is the Sum of the Previous N Numbers

Problem:

We want to create a sequence of numbers where each member of the sequence is the sum of the previous N number of values.

Solution:

Use the SUM, OFFSET, INDIRECT, ADDRESS, ROW, and COLUMN functions as shown in the following formula:
=SUM(OFFSET(INDIRECT(ADDRESS(ROW(),COLUMN())),0,-1,1,-2))

I have a question on the portion of the formula on page 329: Indirect(Address(Row(),Column())).


When I audit this formula it results in the cell address. Why is that? Doesn't this result in a circular reference? If I input just this formula in a cell I get a circular error? What am I not understanding about the properties of the INDIRECT function? Thank you for your help.