The following artilce is writen by Fort Phoenix , to help the ESO beginners . I post it here just also want to help more players . And credit to Fort Phoenix .

Ok, the Ancestral Forge, the source of Jade Combining, Pet Melds, Soulstones and most of all -- frustration, I'll attempt to simplify.

1. Raws, Crudes and Commons.

Jades come in their lowest form as Raws which give minimal status boosts when embedded into Armor/Weapons. In order to create the next level of Jade, two units of the previous level Jades is required, for example; 2 Raw Jades of Fog makes a Crude Jade of Fog. Although you can embed them into items at this stage, I wouldn't advise it, due to the process being costly, so in order to get the best of your Jades don't bother embedding raws. Your best bet would be to save all you raws until you have enough gold to meld them together to create higher level Jades which give increasingly better stat boosts. One requirement for melding lower level Jades into higher level Jades is a character of level 30 and higher.

First Step: Jades
Acquire 2 Raw Jades(Fog, Rain, etc.)

Second Step: Secondary Material
Head over to the Blacksmith right next to the Acestral Forge and buy 1 Smithery Goo. Each attempt to meld Jades consumes 1 Goo, fail or success, they're pretty cheap, only 10bronze a pop.

Third Step: Access
Access the Ancestral Forge and choose the 2nd option -- 'Forge'

Fourth Step: Input
At this point you should see the 1st image below, also, Jades you wish to combine have to be in a stack of 2 or more, adding a single Jade to 2 slots and attempting to combine won't work. The process of combining the Jades also costs gold for each attempt, detailed costs are listed below. Now simply right click the Smithery Goo, enough money to attempt and the Jades(stack of 2 or more), you should now have the 2nd image, then just hit Start to begin the process.

Fifth Step: Success or Failure
Success comes in one form; the creation of the next level Jade. Failure however comes in two forms; the meld can fail and only 1 Jade can be lost or it can 'Failed to Combine' and both Jades be lost, frustrating yes, however the payoff for successful higher level Jades can be very rewarding.