CAGED

From GuitarWiki

The Caged System is made up of five basic chord shapes on the fretboard. Each form is based on the five main open major chords in standard tuning (C, A, G, E, and D). So for example, the C shape could be any chord that is fretted with the same shape as an open C Major chord. Here are the open shapes for each chord: C = x32010 A = x02220 G = 320003 E = 022100 D = xx0232 Each of these chord shapes connects in a specific order as you move up the neck. For example, if you start with an open C Major chord, you can move up to the third fret and bar it and play an A major chord shape to play another form of C major. You can move higher up the neck and bar the fifth fret and play a G major chord shape to get another form of C major. This continues up the neck forming the word "C.A.G.E.D" as you use each of the forms. This method works for any chord. If you start with an open E major chord, you would then continue to play an E with a D major chord shape. This would be done by barring the 2nd fret and holding down the D shape on the top three strings. This would then continue through the other forms, C, A, and G and eventually start all over.

This method can also be expanded and you can play scales in the position of each chord form. You will be able to connect all the scales seamlessly up and down the neck with enough practice. When all these forms are memorized, then you can easily change the scale you are playing and not have to move your hand to a different position. Eventually with enough knowledge and practice of the CAGED system, you should be able to visualize the scales and chords on the neck of the guitar without having to think about what forms they are in. You should also be able to play within these forms without having to play each note in sequence.