At the bridge with the red dragon sitting on it, run across the bridge and he will spit fire at you. Go down the stairs on the right side of the bridge and kick the ladder down. There is a bonfire at the bottom of the ladder. Rest at the bonfire to and make the enemies spawn back in place. Now go back up the ladder, out the door that leads to the path under the dragon, and stay close to the wall on the left so the enemy doesn't see you. Shoot the dragon's tail and run back quickly up the stairs about half way or more. The dragon will spit fire, killing all the undead. That gives you 300 souls. Go back down the ladder, before you rest at the bonfire kill the undead out the door and get around another 300 souls. Repeat until you have the desired amount of souls
By the bonfire behind the hidden wall in Darkroot garden is a locked door sealed by the Astoras crest (which you can buy for 20,000 souls at the Blacksmith in the undead parish). It creates a shortcut to the boss Sif, however before that is a mage, a semi-invisible knight, rogue, and an archer. You can head down the staircase just outside of the door and see the mage standing by a lightplant. With a bow and one well placed arrow(doesn't matter what type, the key is to hit him, not kill him) you can shoot him once and then lure him back into the area by the bonfire. He's very easy to kill alone, just make sure the semi-invisible knight doesn't follow him. Kill the mage and you will get 2000 souls. Now here's the kicker, every time you rest at the bonfire he returns to life. Rinse and repeat and you can accumulate vast amounts of souls in a short period of time.
Entry location: Under the bridge entrance to the Undead Parish
When under the bridge, have at least 30 or so arrows and a bow. There is a red dragon guarding the entrance on top of the wall. Fire at the tail until the tail has been destroyed. The sword will appear in your inventory.
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