| The CAGED
system is inherent to how the guitar works- in standard tuning
of course- whether we recognize it or not!. The "CAGED" system is just an other way of seeing the fretboard, and the connections between the basic scale/chord forms.
REMEMBER: "CAGED" is based on the OPEN forms that we all use when playing any chord. For example; when you play an "F" chord, down near the nut, it looks (is shaped) like an "E" chord, but one fret higher. There is no "F" type chord. That same principle works for all the chords up and down the neck.
If you start with an open "C" chord, what would the next "C" chord up the neck look like? That would be an "A" form barred at the 3rd fret. Next would be the "G" form barred at the 5th fret (yes, a bit of a stretch, I know...), followed by the "E" form ( most guitarists favourite form!) at the 8th fret, then the "D" form at the 10th fret (another stretch!), and finally, the "C" form again, barring at the 12th fret.
Please note: there is no rule that says you can't mix the forms - for example; suppose you wanted to play a really sweet jazz chord named "CMaj7(add6)", voiced from the low strings to the high strings as 5,1,3,7,3,6(G,C,E,B,E,A). You could use a combination of "C" and "A" forms from the 2nd through the 5th frets. See example below.
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