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G#dim7
Description
The dimished 7 chord is a 'symmetrical' chord, made up of 4 notes, each a minor 3rd away from its neighbours: 1-b3-b5-6
It is used as a replacement for a dominant 7 chord a semitone below one of its notes, or to move between different chords.
Standard scale choice
Use the diminished scale! It alternates the intervals wholetone-semitone-wholetone-... for the whole octave: 1 2 b3 4 b5 #5 6 7
Hip options
Notice that it is possible to build a major or a minor triad on every note of this scale. It sounds good to build up lines from the arpeggios of these triads. Also notice that anything you play can be repeated exactly up a minor 3rd, and up another minor 3rd, and so on...