The CAGED system for guitar chords is one way we can learn to play any chord, anywhere on the fretboard. The Major chords, C, A, G, E, & D can be moved up the neck to create the other 12 major chords [12 for 1]. We have simplified (fragmented or dropped) some tones to make the fingerings easier.
The numbers inside the circles are the chord component (Root, 3rd, 5th). The smaller numbers outside the circles are the fingerings. Memorize the chord component within each shape. Once we know this, then we can modify what is there by using formulas.
There are more ways to play these chords as they are moved up the fretboard. Many fragments are possible. It is interesting to play a fragment, leave an open string (or two), and see what types of sounds are created.
The CAGED guitar chords create a framework for learning to play any type of chord, anywhere on the fretboard.
We then use the caged chords to create other types of chords [minor, augmented, diminished, minor 7, Major 7, Dominant 7, add9, & many more types of chords, etc.] by modifying tones within them.
The numbers inside the circles are the chord component (Root, 3rd, 5th). The black numbers are the tones that can be added or substituted or swapped out for other chord tones.
Obviously at any given moment, we can only have 6 tones ringing at once. Yet, we can also have changing elements (tones that toggle between each other in a given moment).
Many fragments are also possible. It is interesting to play a fragment, leave an open string (or two), and see what types of sounds you can create.
Once we have the chord components within the form (the Root, the 3rd, and the 5th) memorized, we start making modifications.
Experiment. We create our own library of guitar chords using a system like this. At that point, guitar chord bibles and mega-chord-chart books just become good kindling.
Knowing how to modify guitar chord forms to get other qualities & sounds is a good skill to have as a guitarist. Using this type of 'changing around what we already know' helps you grow your chord library at a thousand times the rate of memorizing one chord after another.
Once we know what makes up a chord, we can parallel or compare a different formula, & build new chords. This works, & works very well.
The smaller numbers outside the dots are the fingerings. The double dots are always the Root of the chord.
The numbers and the flats next to the chord are the chord component. Notice how we start with a 3, for example, and if we lower it, we can call it a flat 3 (flat-3rd).
Guitar chord forms are a powerful method for organizing the massive amount of possibilities [a good way to track them]. Tracking at a certain point, converts to pure knowledge (no thinking).