In this DROPS video we show how you can knit Fair Isle (2 colour knitting) using the continental method.
In this video we are following a chart back and forth on needles, knitting with two colors. The color that not is knitted is following behind the work when knitting RS rows. Make sure it's not too tight or too loose. If more than 3 sts in a row of one of the colors, then twist the yarns for every 3 sts, by picking up the working yarn alternately above and under the yarn following on the back. When working WS rows have the yarn following in front of work, again make sure you have the right tension on the thread. Note - if a color not is used all the way at the end of the row, you can drop it, but if it will be used at the beginning of the next row, then keep carry it a long by twisting around the working yarn. Don't worry if it's a bit uneven, it will even out a lot when blocking.