There are five open chord shapes every guitarist learns first: C, A, G, E and D. Move any one of them up the neck and barre what the nut was holding, and it is still that shape, just naming a different chord. Five shapes, and between them they cover the whole neck for any chord you like. That is the entire system.
The five shapes for one chord
Take C major. The C shape sits at the nut, and the same chord turns up again as an A shape at the third fret, a G shape at the fifth, an E shape at the eighth and a D shape at the tenth. Five ways to play one chord, spread along the neck.
The order never changes
Going up the neck the shapes always appear in the order C, A, G, E, D, and then C again an octave higher. It never breaks and it never reorders. What changes between keys is only where you enter the loop.
| Key | Going up the neck |
|---|---|
| C | C at 0, A at 3, G at 5, E at 8, D at 10 |
| A | A at 0, G at 2, E at 5, D at 7, C at 9 |
| F | E at 1, D at 3, C at 5, A at 8, G at 10 |
| B | A at 2, G at 4, E at 7, D at 9, C at 11 |
Read those rows across and they are all the same sequence, started at a different letter. F begins at E and wraps round to G; B begins at A. This holds in all twelve keys, and the app relies on it: the shape chips are simply sorted by fret, and that sort always walks the cycle.
The shapes overlap, and that is the useful part
Neighbouring shapes share notes. In A major the A and G shapes both hold three notes at the second fret, the G and E shapes share the fifth, the E and D shapes share the seventh. Those shared notes are the seam: they are where you cross from one box to the next without lifting your hand off the neck.
In minor
The geometry is identical. Every major third drops a semitone to become a minor third and the rest of the shape stays exactly where it was. The C and G forms lose their third off the top of the shape when you do this, so those two strings take the fifth instead, which is why the minor C and G forms look like stretches. The order, the positions and the seams are all unchanged.