When he was still alive Freddy made the glove himself. He took a gardening glove and fashioned sharp knives to the end of each finger. It was crude but suited him in his sociopathic ways.
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He only wears it in New Nightmare for the last part of the movie, to depict the difference between the "real" Freddy and the "movie" Freddy.
To make little boys like you ask questions.
Apparently he has a offensive tattoo on his hand and they asked him to wear the bandage.
it was his right hand,his index finger, his pinkie and his ring finger.
They go on your marriage finger.... the one next to your pinky.... on your left hand.