In funky songs, or reggae like songs, how do the guitarists make the "chunk" sound so distinct, is it by using a bunch of reverb?
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With a wah pedal and palm muting.
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Quote by DeeWhy
With a wah pedal and palm muting.

In funk yeah, but not in reggae.

In terms of tone you need to have a tone with plenty of 'bite'. This is easy if you have a strat, but if not you just gotta turn some treble up. Your strumming motion must also be very swift (and I find downstrokes sound better for reggae than upstrokes, even though upstrokes feels like a more natural motion on the off-beat).
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Quote by Jinskee
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Lots of treble. Funk and reggae rhythms on guitar tend to be very staccato as well.