Mosaic Knitting

Mosaic knitting is a tuck or slip stitch technique. There are always two identical rows and yarn changed every two rows. By changing the yarn that had tuck or slip stitches those stitches look as if they were knit with the contrasting color in the row with the other color.
Patterns are drawn in a chart that shows the design, like the following picture.

You read it from the bottom right. Row 1 and 2 are dark color (shown in black) The black squares in a dark color row mean knit stitches, the white squares tuck or slip. Then going up row 3 and 4 are light color rows. Here the white squares mean knit stitches and the black one’s tuck or slip.
Drawing this in DAK the first 2 rows start on the right side with a tuck stitch, then knit, then tuck, then 3 knit stitches …
Row 3 and 4 are light color yarn and start with 3 knit stitches, then 1 tuck, one knit, one tuck ….. In DAK tuck (or slip) stitches are the non selected needles, here shown in white, the selected needles shown in black knit.
Here is the DAK stitch pattern. This looks very different from the mosaic chart on top, but is the correct stitch pattern.

chart for electronic or punchcard machine

References:
Barbara Walker: Mosaic Knitting
Kathleen Kinder: Mosaic Floatless Fair Isle
Susan Guagliumi: Handknits by Machine