aka Laterial braid, aka Estonian Vikkel braid
Working a horizontal braid creates a line of horizontally-aligned knit stitches. You can do single or multicolored Vikkel braid. This video is showing a multicolored braid.

Start by casting on a new stitch before the first stitch.
*Knit with col 1 into the back of the 2nd stitch. Then knit with col 2 into the 1st stitch. Drop both stitches off the left needle. Slip the first stitch on right needle back onto the left needle, knit with col 2 into the back of the 2nd stitch. Then knit with col 1 into the 1st stitch. Drop both stitches off the left needle. Slip the first stitch on right needle back onto the left needle *. Repeat *-* until last st on row. K last st, and pass next to last st over.

http://www.ravelry.com/patterns/library/jons-sweater
8640.jon_2700_s-3.jpg_2d00_400x0_medium (333x500, 114Kb)