Do the actions indicated by the rhyme
Dance your fingers up, dance your fingers down
Dance them to the side and dance them all around.
Dance them on our shoulders, dance them on your head.
Dance them on your tummy, and put them all to bed!
This is also fun to do with shakers. Just change the words to "shake your shakers up."
See also: Tommy Two Thumbs (with video!)
Thumbkin dances up, Thumbkin dances down.
Thumbkin dances all around the town.
He's dancing on my shoulders.
He's dancing on my knees.
He's dancing all around for everyone to see.
Pointer - She
Pinkie - They