I think the problem is that you made the hand come up kinda like a circle, instead of going strait up. You can also achieve smooth animation with only like 4 frames, if you look at my animation. (That's only 4 frames xD) Also SLIGHTLY moving other body parts (Like the other arm, hair eyes, and legs) give your character more personality, and makes it more interesting. Right now Terre seems happy to see whoever he's waving to. If you want really little motions, when selecting something, use the arrow keys to move it one pixel the direction you are pressing :) In creating the bounce, I didn't do anything to his body, only moved the hair a little down. And personally, I think making his mouth move up while he was waving would make this look better (Instead of before)