Watch the Breakdown: Variation 3 online guitar lesson by Tierra Negra from Magic Gypsy Chords & Rhythms

Capo 3rd fret
Frets/notes are counted onwards from the capo.
Capo = 0

Dm7/9 – 3rd position
Dm7/9 is a typical jazz chord but this time strummed with a flamenco feel and with an open E-string. Low E-string is muted with the tip of the 2nd finger.

C7/9 – 2nd position
It is an easy change from Dm7/9 to C7/9. This chord is also a jazz chord and sounds great with the open E-string. The low E-string is muted with the tip of the 2nd finger.

Bb7/9/#11 – 1st position
Changing to Bb7/9/#11 is easy too. You just slide the entire chord into the first fret. The 1st finger is behind the capo. Make sure that D-string rings freely under the other fingers. Low E-string is muted with the 2nd finger and E-string rings open.

A Phrygian – 2nd fret
This is a convenient fingering for the A-Phrygian chord. You can visualize it as a D chord shape played on D, G and B-string.