Shaping the Armholes and Neckline:
- Next round, bind off 2 stitches, knit 35 (38, 40, 43, 50) stitches. Turn and continue to work flat on just these stitches. The stitches for the back can be placed on a stitch marker or left to hang out on the cable of your circular needle. Bind off 2 and purl across. 34 (37, 39, 42, 49) stitches remain.
- All sizes, bind off 2 stitches at beginning of next 2 rows. 30 (33, 35, 38, 45) stitches.
- For 2- and 4-year-old sizes only, bind off 1 stitch at the beginning of the next 4 rows. 34 stitches remain for size 2 and 41 for size 4.
- Work even in Stockinette until 1.5 (1.5, 1.75, 2, 2.5) inches from beginning of armhole shaping, ending with a wrong side row.
- Next row, knit 12, bind off 6 (9, 11, 10, 17) stitches, knit 11. Work one strap completely, then the other, continuing in Stockinette.
- On the next right side row, bind off 3 and knit across. The next right side row, bind off 2 and knit across. The next right side row, bind off 1 and knit across. 6 stitches remain.
- Work even until entire armhole depth is 3.25, (3.5, 3.75, 4.25, 4.75) inches.
- Put stitches on a holder, cut yarn, join yarn to the other armhole stitches and work them in the same manner, but bind off at the beginning of wrong side rows, beginning with the second wrong side row you work.
Knitting the Back:
- Place the stitches for the back on the needle so that the next row is a knit row. Work the armhole shaping as for front (steps 1 through 3 above).
- Work even until piece measures almost 3.25 (3.5, 3.75, 4.25, 4.75) inches from beginning of armhole shaping, ending on a right side row.
- Knit 6, bind off 18 (21, 23, 22,29), knit 5.
Note: This method of knitting the back without neck shaping (as shown in the picture) is best for younger kids or those with small heads. Alternatively you may work the back exactly as for the front for more head room.
Finishing:
With wrong sides out, place 6 stitches for one strap front and back onto the two ends of the circular needle (or use double pointed needles). With a third needle, perform the 3-needle bind off. Repeat on the other side.
Use double pointed needles to pick up and knit stitches around each armhole and the neckline in turn. The number of stitches you pick up is not critical and will depend on how much space you want between your picots. It is key, however, to pick up an even number of stitches.
Knit 1 round, knit the eyelet round as established, knit 1 round, bind off. Complete the same procedure for each armhole and the neckline.
For the armholes, neck and bottom hem, fold the knitting up to the back of the work so that the round of eyelets (the first round in the case of the bottom) makes a picot border. Sew the hems to the back of the work.
Blocking is helpful to get the picot edges to lie flatter and to get the proper measurements, if necessary.

