This stitch is very decorative with diamond formations. The edges of the diamonds are knotted, which explains the name.
The knotted diamond stitch can require some amount of patience from beginners before you get the hang of it.

This stitch is worked between two parallel stitch lines. It is better worked from top to bottom.

 


 
 Fig 1: Start by making a straight stitch A-B, between the two stitch lines.             Fig 2: Come out from a point C, a little below B. Now, take the needle under the stitch A-B, without plucking the fabric underneath. Twist the thread around the needle from the left, as shown.
 
 Fig 3: Pull the needle out towards the right hand side. This creates a small knot on the right side, as you can see.
Now, to create a same kind of knot on the left edge, take the needle under the stitch A-B, and twist the thread around the needle from the left as before.
 
   Fig 4: Pull out the needle gently towards the left and create the knot on the left edge. This also makes a new straight stitch below the first one.
Now, to create a knot in the middle, bring out the needle from the point D, as shown. Then, take the needle under the new straight stitch and twist the thread around the needle, this time, from the right side.
 
 Fig 5: Pull out the needle gently towards you. This creates a knot in the center. Take in the needle through E, a point parallel to D.
Now, bring out the needle through F. As illustrated, take the needle under the right portion of the previous stitch and twist the thread around the needle, pull it out to create a knot.
Continue with the procedure by taking the needle under the left portion of the previous stitch, and so forth.
   Fig 6:  A finished portion will look like this.  
     

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