oh, I didn't know transparency counted as a color.

This version is better =) 

So...

Shadow-Gamer - While animating I was treating the wavey bit was as his arm. Trying to keep this game's sprites fun and no too realistic but I know the arm does look a little out of place.

Tpoe - Yes 2 colours because of transparency.

Flarly - Yep he's standing up. Wanted to use a a more exagerated pose.

 and thanks for the comments ^_^

EDIT/ Updated with a newer version

Infinite loop =)

I like this. 

Great animation on the horse. But is the rider standing up or what?

I've always liked 1bit stuff, it always reminds me of those simple, old LCD games. I'm looking forward to seeing more of your 1bit sprites! 

Wonderful animation, I really like watching it!

Transparency is a colour, So it's black + trans = two :)

Why does it say 2 colors?

I like it, nice animation. All I want to know is: what is that waving behind him? His arm? A cape?