The CAGED system is named for the open position shapes of the major chords C A G E D. These chords each form a shape that can be moved along the Guitar neck to create new Chords for example, When you move the E major down one fret to the first position you get the F major chord.
the chord will change each time you move it down a fret and since these shapes are based off major chords. So, when you move them they form major chords.
Order of the caged system
The chord forms in the caged system always appear in the same order and repeat after 12 frets not matter what this is important to remember. with this system you will be able to find any major chord all over the guitar neck using these forms. that’s why the system is so great it will allow you visualize all over the neck what ever chord you want to play.
Take the E major chord in the open position if you want to play the E major in other spots on the guitar we can use the caged system to find its location anywhere we want to play it. so if we want E major we know it starts on the open position since we know where it is located in the spelling of caged then the next shape of E major would be the D shape starting on the 2end position.
As you can see the shapes follow the spelling but the position will move up with your finger fretting one of the E’s in the last form we know the next form would be C and then A and so on till we get back to E form at the 12 fret .
CAGED system for guitar
Below is a Charts showing the C major chord. You can clearly see how the forms are derived from the major chords, Take note of how the next form uses a root from the last form and so on study this chart it should become clear.
Of course depending on what chord your using. The chord form spelling will start at a different point and proceed through the spelling of CAGED .
This system is just another useful tool it will help you learn major chords and more importantly how to find them using chords forms all over the neck. This system can be used to aid in learning all the notes on the neck of the guitar. Be sure to learn you notes on the E strings and use your time learning this system to learn the roots of all the forms and then the 3erds and the 5ths of each chord.
for a complete understanding on this system be sure to visit this Site.
Be sure to check out my next section to gain a basic understanding of pentatonic scales