In the image below you can see how the yarn twists.
How to change colors in knitting in the round. Cast on your preferred number of stitches in the first color. Knit one round in color a. Change colors and knit in color b up until three stitches before the end of that row.
Knitting and purling open the door to all sorts of patterns that involve alternating between knit and purl stitches. Continue to knit with color b until you have worked 1 complete round. Insert your right knitting needle into the next stitch on the left needle purlwise.
To change colors, start knitting with the new yarn. Learn how to add a stripe and do a jogless color change when knitting in the round. Cross the old tail over the new.
Once the yellow is pulled to the side take the white yarn and twist it over top the yellow and knit as you normally would. You'll also learn how to sew in the ends for a perfect join. When the old pattern is complete, and you’re ready to add a different color, start knitting with new yarn.