Fingerstyle guitar is a term meaning fingerpicking, but typically on a steel string guitar. We can fingerpick (play fingerstyle) on any type of guitar, yet the term is closely associated with steel string guitars. Jazz players using the term for finger comping too.
In this lesson, we will learn some more arpeggio patterns, a finger flutter exercise, & some blocking (playing tones together as a block).
Let's start with an arpeggio exercise.

Now, let's stick with those string sets, but mix up the patterns (use all six combinations of pima).

We can use any chord that utilizes 6 strings, such as E or Em, or just use open strings.
Try to keep the driver knuckles over the string set we are picking. The space between your thumb & index will open up, & our elbow will move our hand over the next string set.
Now, let's try an arpeggio pattern that is popular for classical guitar, & a great one to know...

Next, let's do some finger flutters. When we train, we should strengthen the muscles of your arms & hands in both directions (extension/flexion). When we pluck or pick towards the hand, we are flexing the muscle. When we do rasgueado, we are extending.

And finally, let's get all the fingers moving together. It is good when you train to alternate between arpeggios, finger flutters, & the following blocking exercise.

Fingerpicking is a method of setting the guitar strings in motion using the fingers, rather than a pick or a toothbrush, etc. It's like having 4 picks rather than one.
It is important to have the most natural mechanics - this creates great tone - round & resonant. Using our hands in alliance with nature & human physiology gets the best results.
To get great tone, it all starts with the drivers and the main knuckle joints for the fingers are the primary drivers. By using this knuckle, the finger will rebound. The thumb's driver is the joint connected to the wrist.
The fingers pluck upward into the hand and the thumb plucks downward (they both strum in both directions). For hand symbols, check out this lesson.

Again, the main driver for fingerpicking is the joint at the hand. This offers us rebound. When we pluck with this joint, the finger will return to its position. If we are getting ready to pluck a different string, we move your arm to get a different fingertip location.
As far as using the main knuckle, think about how we pick things up. Can we effectively pick up anything with the upper finger joints? How about waving bye like this. Whoever we are waving too might consider us a freak, or that we are making some type of groping gesture.

A goal in learning to fingerpick is to discover how our hands work and what type of motion gets great tone.
In modern playing, we play thumb out. The thumb plucks to the outside of the hand, as when you make a fist.

The thumb & fingers need a pathway; a path that doesn't interfere with the follow through of the others.
Always keep in mind: thumb plucks down, outside the fingers, & the fingers pluck up, inside the thumb.
Play a basic arpeggio exercise. An arpeggio is a broken chord - playing tones in a chord one at a time.

We let our fingers rebound - come back to where they started. This allows our physiology to do most of the work. We naturally know where our fingertip is located.