Each major shape is, in essence, a way of maintaining the relative positions of the root, third and fifth notes, through transpositions.
The familiar shapes of the major chords, now need to be scrutinized a bit more to assess the relative positions of the root notes, the major 3rds (M3) and the perfect 5ths (P5) - the three intervals that constitute a major chord.
As is obvious from the chord diagrams above, every CAGED major chord is made up of one or more root notes, one of them being played as the bass note (heaviest / topmost), and one or more M3 and one P5 notes. Now, as we progress up and down the fretboard, this relationship remain unchanged, producing only major chords. Not only that, the chord is defined by the note being played as the root note.
For example, shifting the E major shape down three steps (E>F-F#-G) on the neck produces the G major chord. The root, M3 and P5 of both these E and G major hold the same relative position to each other on the strings (illustrated below).
This principle is applicable over every CAGED chord shape. Not only that, this, in an expanded sense applies to every movable chord shape.
The CAGED System on a Guitar:
- Introduction to the CAGED system
- Fretboard layout
- Bar chords and movable shapes
- The basic 5 CAGED shapes
- CAGED Major chords: C Major, A Major, G Major, E Major, D Major
- Non-CAGED Major chords : F major, B major, C#, Eb, etc
- Principle of CAGED system
- CAGED Minor chords
- Fretboard note map
- Extended guitar chords
http://basicmusictheory.blogspot.com/2010/08/principle-of-caged-system-and-movable.html
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