Step 5Second round and beyond
Second round
Slip stitch through the next two dc loops (image 1)
In the corner hole between the first and second shell of round one, which I will refer to as a ch-2 sp (chain 2 space), ch3, 2dc, ch2, 3dc.
Ch1 then 3dc, ch2, 3dc in the next hole (ch-2 sp).
Then ch1 and 3dc, ch2, 3dc in the next ch-2 sp.
Repeat ch1 and 3dc, ch2, 3dc in the next ch-2 sp (the last corner hole). Then sl st in first dc to complete the second round.
Third round and beyond
Slip stitch through the next two dc loops, in next ch-2 sp, ch3, 2dc, ch2, 3dc. Then ch1and 3dc in the ch-1 sp (the hole along the edge -see image4), ch1then 3dc, 2ch, 3dc in next ch-2 sp, ch1then 3dc in the next ch-1 sp. Repeat the rest of the way around. Continue in this way in subsequent rounds.
Note: To make it simpler to remember, use ch2 between shells on the corner, making two shells in each corner hole and use ch1 between each shell along the edge making one shell per hole.
There is no limit to how many rounds to go on your granny square. You can also change yarn (to a different colour) anywhere between rounds.
There is also a great instructable (with video) on how to make a granny square here and a helpful tutorial on different crochet stitches here.
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