Select a dowel rod and cut down to size using a saw. Sand the ends to clean up.
Begin with the center color. Wrap the yarn around your wood or cardboard about 15 - 16 times. Trim the end.
Once you are done wrapping and have trimmed the end from the skein, cut across the yarn. You'll basically have 15 - 16 pieces of yarn together that will be tied to your dowel.
Double the yarn (fold it in half) so that there is a loop at the top and the ends are all at the same length. Take the top of the yarn stands and flip it over as shown in the picture, creating a loop with the yarn.
Tighten the loop around the dowel rod toward the center. You can adjust later, and don't worry about the yarn being completely even at the bottom at this moment. Repeat, so that you have two strands of color A in the middle of your rod.
Select color B, and then make four yarn strands to put on your dowel rod, two on either side of color A. Finish with color C - using three strands each on either side of color B. You will end up with 12 total lengths of yarn.
Clean up the yarn by trimming the ends. You could cut straight across, create a "v" shape; whatever you like. I chose to create a v-shape.
Drill into each end of the dowel rod for hanging (this is optional; you can also tie the yarn onto the ends).
Create a braid of the three colors of yarn about 24" long, then feed through the holes and knot for hanging. Display on a thumb tack or nail.