Gesture recognition is concerned with the goal of interpreting human gestures through mathematical algorithms. Gestures can originate from any bodily motion or state but commonly originate from the face or hand. Hand gesture detection in a real time environment, where the time and memory are important issues, is a critical operation. Hand gesture recognition largely depends on the accurate detection of the fingers. This paper presents a new algorithmic approach to detect and identify fingers of human hand. The proposed algorithm does not depend upon the prior knowledge of the scene. It detects the active fingers and Metacarpophalangeal (MCP) of the inactive fingers from an already detected hand. Dynamic thresholding technique and connected component labeling scheme are employed for background elimination and hand detection respectively. Algorithm proposed a new approach for finger identification in real time environment keeping the memory and time constraint as low as possible.