When you play the notes of a chord one at a time, you're playing an arpeggio.
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Arpeggios can be played in an ascending manner, descending manner, or broken up into sequences through a picking or fingerstyle pattern.
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Arpeggios are an effective improvisation tool because they clearly outline chords and are easier to play than scales. Arpeggios are used in all styles of music and are a must-know for any beginner or advanced guitarist.
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Links to arpeggio lessons