Jutsu

Jutsu, or skills/techniques, are the mystical arts a ninja will utilize in battle. To use a jutsu, the ninja will need to use their chakra. To perform a jutsu, the ninja will bring out and release the two energies of chakra. By forming handseals, the ninja is able manifest the desired jutsu. Because of the extensive number of hand seals and different combinations, there are thousands of potential jutsu to be discovered.

The Basics
There are three types of jutsu: Ninjutsu, Genjutsu, and Taijutsu. There are also Kekkei Genkai abilities which aren't jutsu, but inherited abilities passed down through certain clans (however, they can be used as base for certain jutsu, such as Haku's Demonic Ice Crystal Mirrors). There is also a fourth type of jutsu called senjutsu. Jutsu can also be attributed to certain parts of the body. (eg. Dojutsu is Jutsu of the eye.)

As an in-between stage, some ninjas can partially control their chakra. This means they can use their chakra, but not effectively control it, which results in poorly executed jutsu, and more importantly, running out of chakra early in a fight. To manipulate their chakra more easily, hand seals can be used. With these hand seals, users can control their chakra with higher efficiency, allowing them to execute their jutsu more effectively. Different jutsu require a different hand seals.

Ranks
Depending on the difficulty or skill necessary to perform a jutsu, they are ranked differently. There are six different ranks in jutsu: Kekkei Genkai and other unique abilities of users do not have a rank.
 * E-rank - Academy student level: E Rank Jutsu are learned by Academy Students which are the basic and most fundamental jutsu for all graduating ninja. (e.g. Clone Technique & Transformation Technique)
 * D-rank - Genin level: D Rank Jutsu are Genin level techniques and can be achieved by all Genin, though many ninja only learn their "type" of technique. (e.g. Earth Release: Double Suicide Decapitation Technique)
 * C-rank - Chunin level: C Rank Jutsu are based on Chunin level techniques though some Genin, like Sasuke Uchiha, can perform this and some Chunin cannot. (e.g. Fire Release: Great Fireball Technique)
 * B-rank - Jonin level: B Rank: B Rank Jutsu are Jonin level techniques but Naruto can also perform this technique, emphasizing his determination and high chakra levels. (e.g. Shadow Clone Technique)
 * A-rank - Kage level or Jonin level: A Rank Jutsu are Elite Jonin level and up, even including some Forbidden Techniques. The Chidori and the Rasengan, mastered respectively by Sasuke and Naruto, are A Ranked Jutsu.
 * S-rank - Secret, extreme level: S Rank are Secret, high class level techniques. Techniques of this rank are mostly known to only 1 or 2 ninja and are often forbidden.(e.g. Wind Release: Rasenshuriken

Fūinjutsu
Fūinjutsu (封印術, Sealing Techniques) are types of jutsu that seal things into objects or people, like sealing the Kyuubi into Naruto, or the Ichibi into Gaara.

Kinjutsu
Kinjutsu (禁術, Forbidden Technique) are techniques that are forbidden to be used due to their lethal side effects or violation of the laws of nature (for example, resurrection of the dead). Orochimaru primarily used these in his quest to achieve immortality, but other jutsu in the series have been legally forbidden to use, such as Naruto's Wind Release: Rasenshuriken, effectively making then kinjutsu.

Jujutsu
Jujutsu (呪術, Curse Technique or Sorcery) is a form of kinjutsu that allows the user to invoke religious powers of Jashin to curse the opponent into torturous pain and death. It may also relate to a certain experiment that grants immortality. Unlike conventional jutsu, Jujutsu is not initiated by hand seals; rather, the practitioner makes use of ritual-like preparations, with the opponent(s) often the one(s) acting out the role of sacrifice, whether they like it or not. The only known practitioners are Orochimaru (Curse Seal) and Hidan (Sorcery: Death Controller Possessing Blood).

Senjutsu
refers to the user's chakra created from spiritual and physical energy within the shinobi as well as energy from nature. This drastically increases the strength of all ninjutsu, genjustu, and taijutsu. It would seem that it stems from the toads, as only Jiraiya, Shima, Fukasaku and Naruto can use it. Gamakichi also seems to be familiar with it.