By me the scenario is so :
I want to be able to set a link to the Category in CMS page so when you click there you will get the Subcategories from this category with their images. And when you click on the images or the name of the subcategory you will get the products of the subcategory.
It is really simply and easy.
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Hi, this is something similar to what I've done on a project for google optimization. Just let me know how deep do you want to go into the subdirectories and will get it done in no time.