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Roving wool, the same kind of wool you'd use for felting, is perfect for rolling into dreads. Depending on your hair length, you may need a  1–2 lb (0.45–0.91 kg) bag of wool.  You can find roving wool at most craft stores. For every 1 lb (0.45 kg) of wool, you should be able to make 50-60 dreads that are 10–12 in (25–30 cm) long. Using a pair of scissors, cut the roving wool into segments with the approximate length and width for your dreads. Keep in mind while cutting that roving wool shrinks up to 1/3 of its size during the dread making process.  The length and width of the segments depends on how large you want your dreads to be. If you want dreads that are 10 inches (25 cm) long and 2 inches (5.1 cm) wide, cut pieces that are 30 inches (76 cm) long and 6 inches (15 cm) wide. Use the first dread you cut as a guideline for the rest of the dreads to keep their size even. Use enough dish soap to make the water color murky, but not opaque, at a ratio of approximately 2 tablespoons (30 mL) of soap for every 1 US gal (3.8 L) of water. Bring the water to a boil, as the dreads will need hot water to bind together tightly. Grab the strips of wool with tongs one at a time and slowly immerse them into the water. After dunking them in the water, lift them out and let them cool down. Wear a thick pair of rubber gloves while dunking the dreads to prevent burns. While squeezing out the excess water, roll the dread back and forth between your palms. Continue rolling until the wool thins out and turns into a dreadlock shape. Keep the gloves on while you're rolling to protect yourself from burns. Find a spot like a clothesline or a hanger to place each dread after you roll it until they are completely dry. Leave them to dry for between several hours and a day, depending on the area's temperature and how long the dreads are.  Your dreads will dry faster if exposed to wind or direct sunlight. If drying your dreads in a windy outdoor location, clip them down with clothespins to prevent them from falling off. Part your hair into small sections and, using rubber bands, insert a wool dread into each section. Box braid the dreads into your hair to secure them tightly, sectioning 2 parts of hair with each synthetic dread and pulling each section to the middle in turn until you reach the ends.  If you have short or no hair, make a wig using the wool dreads instead of synthetic hair as an alternative to braiding.  You can leave these in your hair for up to 1-2 days at a time. Remove them by taking out the rubber bands and carefully unbraiding each section.

Summary:
Buy a bag of roving wool in your desired color. Cut the roving wool into strips. Mix dish soap with boiling water in a pot. Dunk the strips of wool in hot water. Roll the strips of wool into dreadlock shapes. Hang the "dreads" up to dry. Braid the dreads into your hair.