If you know how to do a rainbow loom fishtail bracelet then you will have no trouble with this. It is the same as the fishtail, but it goes in a square.
Step 1: Choosing Your Colors
I recommend choosing at least two different colors, otherwise it could become difficult to tell which pieces to loop.
For this instructable I used three colors. Blue, yellow, and pink (respectively).
Step 3: Creating the Base
***Make sure you place the bands somewhere on the peg board that would allow the project to hang through the middle. If you have the base of the board below your pegs, there will be no where for your project to go and it will not work.
To begin, you must take your first color (mine is blue) and create a figure 8.
TIP: I find it easiest to put one end of the band around a peg and THEN twist it before wrapping it to the other side. Of course, you can wrap it around your fingers first if you prefer.
Next, place another figure 8 perpendicular to the first, another perpendicular to the second, and one more to complete the square (see pictures).
Step 4: Adding a Level
Take your next color and create a square on top of your base.
Step 5: One More Layer
Step 6: Looping
Like with the fishtail pattern, you now loop the bottom layer over the peg and to the middle. Do this on all sides.
(See pictures for clarification.)
Step 9: Continuing the Pattern
Make sure your project is being fed down the center of your project.
Step 10: Choosing a Length
You can make a small grip, or you can continue with the project to make it span the length of your pen or pencil.
Step 11: Removing from the Loom
After that you will be left with just one layer of the pegs. Pull your hook through each corner and pull it off the loom. Then, pull your project through the center of the loom completely.
You then want to use two tooth pics (Or two hooks, or two straws, etc) to hold onto that last loop.
Step 12: Inserting your Pen or Pencil
Next, use your toothpicks to loop the ends over the tip of the pen or pencil.
As an option, you can loop the bottom most loops as well. It is not necessary, but I like to play it safe :)
Step 13: Congratulations, you are Finished!
I suppose you can use any loop on the bottom for this, but I used my hook to insert an extra band just in case the weight caused it to break. I doubt it would, but as I said, I like to play it safe, and I would rather loose one band than end up ripping the whole project.
Also as an option, you could twist your grip/cover to make it look a little more nifty!
I hope you enjoyed my instructable, and I hope you enjoy your stylish writing utensil(s)! :)