Here is a little how to on making those little curly corkscrews. You may download a PDF version here:Corkscrew Fringe Tutorial
Cast on at least 20 pegs on your loom. I recommend the cable cast on as it is a nice and tight cast on. (Thanks Isela!)
Then turn as for a flat piece and skip the first stitch bringing your yarn from the back between the pegs 1 and 2 to the front of your work.
1. Knit the stitch on the next peg using the flat stitch. (That is where you simple hold the working yarn in front of the peg above the loop that is already there and lift the loop up and over the working yarn.
2. Then you will bring your yarn around the same peg (counterclockwise) with and e-wrap and knit off.
3. Then you will bring your working yarn around to the front of the same peg again (going around in a counter clockwise direction) and knit another flat stitch on that peg.
So you are knitting 3 stitches on the same peg.. flat, e-wrap, flat.
Then move to the next peg and repeat steps 1-3 again one peg at a time till you reach the end of the row.
Then turn and cast off purl-wise….
To cast off purl-wise:
1. E-wrap the first peg and knit off then move tot he next peg and e-wrap the second peg and knit off.
2. Lift the loop off the first peg and place it on the second peg.
3. Pull the bottom loop up and through the new loop as if to purl, lift the upper loop off and behind the peg and place the lower loop onto the peg.
4. Repeat steps 1-3 till all pegs are cast off. Then cut your working yarn leaving a 3 inch tail and pull it through the last loop to secure.
You should have a nice little corkscrew.. you may have to give it a little twist get it to curl up a little tighter for you.