Cast on 30 stitches. Knit 6 rows, increasing one stitch at the beginning of every odd row and decreasing one stitch at the beginning of every even row. (Inc. rows 1, 3, 5 and Dec. rows 2, 4, 6).
Row 7: Change yarn and knit rows 1, 3, 5; purl rows 2, 4, 6
doing increases on knit rows and decreases on purl rows.
Continue pattern until 7 stripes of each color are done. Cast off.
On one long edge, pick up and knit 3 stitches in each stripe (42 stitches).
Row 1: Knit 1, Knit 2 tog. across row.
Row 2: Knit 2 tog. across row. Cut yarn and thread thru needle. Pull yarn thru remaining stitches and fasten off.
Cuff: On other long edge, pick up and knit 6 stitches in each stripe (84 stitches). Knit 1, Purl 1 for 2-3 inches. Bind off.
Sew side seam and make pompom for top and attach to hat.
** The size of this cap changes according to needle size and yarn.