Before you start collect the following items:
1. Hair gel (only if you have flyaways)
2. Elastics (the small clear ones)
3. Straight hair (this style works best on straight hair since you are working with lots of little strands)
4. Teasing brush (optional)
For the visual learners, here is a photo step by step guide on how to do this style! I also have a written step by step below:)
Step 1: If you want a more glam look, tease the crown of your hair for added volume. Take a strand from the front of your head and hold apart from the rest of your hair. Gather the rest of your hair to the side and secure with an elastic.
Step 2 – Step 4: Grip the strand with one hand, and using the other wrap the strand around the front of the ponytail and loop it to create a knot.
Step 5: Gather another strand of hair from the ponytail and combine it with the end of your knot. Add a small amount of gel to combine the two pieces to avoid fly aways.
Step 6 – Step 10: Repeat step 4 on the new strand of hair. Continue these steps as far down as you would like.
Step 11: Secure the bottom with an elastic.
Credits to/Entire article from http://emilytarvin.wordpress.com/2012/12/06/hair-tutorial-the-chinese-staircase-ponytail/