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Chain is a term that refers to spells or effects that jump from one target to another. This is how the Sorceress' Chain Lightning skill worked in Diablo II (though not how the original Chain Lightning worked in Diablo I).

Chain Lightning is not a Wizard skill in Diablo III, but the term is often used for the behavior of skills like Electrocute and Entangling Shot.

Electrocute chaining between skeletons.
Entangling Shot literally chains enemies together.

See other Reference terms.