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Watch the Using Diminished Chords online guitar lesson by Frank Vignola from 1-2-3 Jazz Chord Melody

Creative option 4 has to do with what you do when you see a diminished chord. We didn't go over diminished chords in your chord vocabulary, but it's very simple. You'll notice in the last line of "Take Me Out to the Ballgame", we identify an F chord with a C note. The next measure you'll see a C diminished. So what will you do? You can either play a single note, then on to the C chord with the C note in the next measure. Or you can choose the melody note and play a diminished chord.

So once again, F chord with the C note on top. We see a diminished chord with a C note, we can either play the melody note alone, move on to the C chord with the C note on top, or play the diminished, so the F chord with the C on top, and the diminished chord with the C on top. And the beautiful thing about the diminished chord is that since it's in minor thirds there are no real different inversions, so we can always rely on this formation. And then a C chord. So that last line can be played like this with the single note... Or like this with the diminished chord...