Cut out a 5 inch circle from a piece of card and mark North, South, East and West. Divide each quarter into 4 and mark these points. Cut slits as shown. There should be 16.
Make a hole with your pencil in the middle. Using Wool (any thickness) in 2 colours cut 8 threads each 24 inches long and tie together with a knot at one end. Push the knot through the hole in the middle of the circle.
Place the threads in the slots as shown in the diagram. Take the thread on the top right and place it bottom right, then take the thread bottom left and place it top left. Turn a quarter and repeat. As you continue the braid will form underneath.