Lovely knitted lace stitch. Called Alsacian Scallop. (Written + video tutorials)
Knitted in a multiple of 21 sts, + 3 and a 14-row repeat.
Row 1 - wrong side: Knit.
Row 2 - right side: Purl.
Row 3: Knit.
Row 4: K1, * yo, k21; rep from * to last 2 sts, k2.
Row 5: P2, * (p1, k3) 5 times, p2; rep from * to last st, p1.
Row 6: K1, * k1, yo, k1, (p3, k1) 5 times, yo; rep from * to last 2 sts, k2.
Row 7: P2, * p2, (k3, p1) 5 times, p2; rep from * to last st, p1.
Row 8: K1, * (k1, yo) twice, (ssk, p2) 5 times, (k1, yo) twice; rep from * to last 2 sts, k2.
Row 9: P2, * p4, (k2, p1) 5 times, p4; rep from * to last st, p1.
Row 10: K1, * (k1, yo) 4 times, (ssk, p1) 5 times, (k1, yo) 4 times; rep from * to last 2 sts, k2.
Row 11: P2, * p8, (k1, p1) 5 times, p8; rep from * to last st, p1.
Row 12: K1, * k8, (ssk) 5 times, k8; rep from * to last 2 sts, k2.
Row 13: P2, * p8, wrap, p9; rep from * to last st, p1.
Row 14: Knit.

Knitting abbreviations:
K: Knit | P: Purl | Yo: Yarn over | Ssk: Slip slip knit.
Wrap: Purl 4, transfer them to a third needle, wrap the yarn around them 3 times clockwise, transfer them to the right needle again.