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I fold my knits, especially the chunkier, heavy ones, and the very fine ones that get shoulder bumps. But I am on an avid hunter for petite sized hangers and once I find the right ones, am going to try hanging all but the chunkiest of knits.
Ditto what Ironkurtain says. Depends on the weave and the function...I only ever hang cardis and only if they can withstand it. I aim for a soft hanger to avoid the nipple problem. Otherwise, I fold them.
I hang everything. It's easier that way, and I don't have to deal with wrinkles or folds. I don't have any heavy knits. Also, I use the velvet hangers.
I was hanging them but they started sproutin those little shoulder bumps that look like wings. I now fold them OVER a hanger (like one does with pants).
I fold heavier knits gently, and they rarely crease. For finer knits I hang them on those Huggable Hangers; they work perfectly! No stretching on the shoulder, no sagging.
My folded sweaters in a drawer don't get wrinkled but they are given plenty of room. Those hung get huggable type hangers and are hung inside out so that if dimples form, they go the other direction, although it hasn't been a problem.
I also use the huggable hangers. I think they really help. In the rare instance a dimple does form, I just pat it down with wet fingers and that takes care of it.
I fold them all at this point as I am short of hanging space anyway and it does solve the problem of "shoulder nipples". Some of them do crush a bit sometimes though so I'm wondering about folding them around something - maybe some tissue paper?- to help prevent this.