I know its a percussive strum, is he up stroking the chord as he percussive strums it to actually play the chords?
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yes, that and he gets chord progression, and using riffs for fills.

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There's more happening there than the video shows. In the first part, you have the strumming, but you also have picked notes - they're either done with a pick or fingerstyle. I don't see him playing that part. He's just doing more of a percussive strum.