Whats a good digital signal processing algorithm that is good on guitar chords? Since Fast Fourier Transform I think only is accurate on single notes played on the guitar bu
The FFT can and will give you all the single tones if you set the software up properly. The whole point of the FFT is to discriminate tones, or if you're an astrophysicist, you want to know the individual elements (sulpher, hydrogen...) that is in the light coming off the star.
Harmonics are not a problem because they have less 'power' than the fundamental frequencey, for example, C=440hz, but C=880hz as well, but 880 will be the smaller spike in the FFT results.