Play Guitar / Guitar Basics Tutorial - How to Read Guitar Chord Diagrams

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The diagram below illustrates a typical chord diagram. This is what it's telling you: 

1. Place the 3rd finger (ring finger) of the fret hand on the 3rd fret of the fifth string (A string) for a 'C' note.
2. Place the 2nd finger (middle finger) of the fret hand on the 2nd fret of the 4th string (D string) for an 'E' note.
3. When strumming or picking the chord, do not pick the open low 'E' string because it has an 'x' over it. Mute it instead. 
4. Strum the open G, B, and E strings when playing this chord because a C major 7 chord is spelled C-E-G-B and the chord you are playing (as described in the diagram below) would, from low to high, include the notes C, E, G, B, E. Theoretically, you could play the low E instead of muting it. I suggest you don't because in most situations you are better off with the C as your lowest note.

Next Lesson: How to Read Guitar Scale Diagrams