---
title: "Continuation Trading"
type: concept
tags: [continuation, intraday, strategy, fair-value-gap]
created: 2026-04-04
updated: 2026-04-08
sources: ["raw/1-1-strategy-s2f.txt", "raw/trade-recaps-nasdaq-gold.txt", "raw/draw-on-liquidity.txt", "raw/trading-journey-mindset.txt", "raw/ict-setups-lecture.txt"]
confidence: high
---

# Continuation Trading

## Definition

Continuation trading is the execution model for trading in the direction of an established [[concepts/draw-on-liquidity]]. Rather than trying to pick tops or bottoms, you wait for price to pull back into a lower-timeframe [[concepts/fair-value-gaps]] or order block within an already-confirmed move, then enter in the direction of the draw. The goal is simple: catch 1R or 2R moves with high probability.

## How It Works

1. **Establish bias** — Identify the [[concepts/draw-on-liquidity]] on higher timeframes
2. **Wait for pullback** — After an impulsive move toward the draw, price retraces
3. **Identify entry zone** — Look for a 15m or 5m [[concepts/fair-value-gaps]] or order block in the pullback
4. **Enter on confirmation** — Price taps the zone and shows displacement back in the direction of the draw
5. **Set stop** — Use [[concepts/protected-stops]] below/above the entry zone's invalidation
6. **Target** — The next draw (failure swing, unfilled gap, weak high/low) for 1R–2R

## Concrete Entry Examples

### 15-Minute Gap Entry (Highest Timeframe Entry)
From the 1:1 S2F strategy: this is the rarest continuation entry, only taken when draw and protection are exceptionally clear.
- **4H context**: Price swept a high, formed [[concepts/smt-divergence]], closed a very bearish 4H candle as a swing with [[concepts/failure-swings]] beneath.
- **15m setup**: "Dumb obvious" draw to failure swings with built-up liquidity below. High protected by the higher-TF SMT and the 4H swing.
- **Entry**: Price formed a reversal, breaker, inversed gaps, built failure swings. Entered at Asia session open. Took 1:1 for a clean win.

### 5-Minute Entry (Higher TF Continuation, Lower TF Failure Swing Model)
- **1H context**: Asia session formed a 1H swing and 1H gap with failure swings above as the target.
- **5m setup**: Price retraced into multiple 5m gaps inside the 1H gap. Clear failure swings / built-up liquidity to target.
- **Key decision**: Did NOT short even though price came from a bearish 1H gap, because there were no failure swings below -- no clear draw for shorts. Only took the long continuation.
- **Entry**: After expansion higher and sweep, waited for a retrace into a 5m gap, got a 5m swing CISD breaker, entered on the 5m inversion for continuation. Targeted 1:1.

### 1-Minute "Last Call for Traders" Entry (Speaker's Favorite)
The highest-probability continuation entry because the reversal is already confirmed -- you are not picking a top or bottom.
- **Setup sequence**: Wait for a reversal to form, then look for a pullback into a gap BEFORE the draw gets taken (draw must remain untapped).
- **Entry**: Reversal forms, takes out a wick inside a gap that gets respected, continues toward failure swings. On the 1m, price tapped into a gap, swept the high, got strong continuation lower. Enter at the breaker targeting the low.
- **Why it works**: You trade continuation after the reversal, when a new failure swing forms toward the untapped draw and rejects from a gap. No top-picking required.

### Trade Recap: NASDAQ Premarket Short (from Trade Recaps)
- **1H**: Identified a [[concepts/fair-value-gaps]] that had been inversed, price respected another 1H gap and traded back into it premarket.
- **Bias**: 1H swing formed, creating bearish bias targeting the weak low formed premarket / post-London.
- **Confluence**: [[concepts/smt-divergence]] confirmed at the highs above the swing.
- **Entry**: Waited for failure swings to get taken, entered short after a [[concepts/change-in-structure]] and inversions of FVGs. Scaled in at an order block, tightened stops to the FVG high.
- **Result**: Part of a $16.6K day across accounts.

### Trade Recap: Gold Short into Asia (from Trade Recaps)
- **4H**: Gold formed SMT divergence with GBP on the 4H chart, plus lower-timeframe SMT between two 4H candles.
- **Entry**: Waited for inversion of two 15-minute fair value gaps as the trigger. Entered short just before market close, held into Asia session.
- **Result**: During Asia open, price pumped up slightly, filled a gap, then dumped to take-profit at the nearest failure swing lows (~2R).

### Draw-on-Liquidity Examples: Gold Asia / USDJPY / DAX
- **Gold (Asia)**: 15m tapped into a 4H gap, identified multiple failure swings below. Asia manipulation higher into the 4H gap, close under the 15m gap, entered short at the 15m gap for continuation. 1R target -- clean win.
- **USDJPY**: 1H formed CISD with continuation back into it; swept a high, formed swing inversion going into Asia. 5m entry: tapped into a 15m gap, entered on a 5m inversion for continuation short. Nearly got stopped out but [[concepts/protected-stops]] held at the highs. Hit TP during Asia -- described as an "A+ setup."
- **DAX (London)**: 4H low failed to get swept; price retraced into a 4H gap and formed a swing point. 5m continuation entry during London session down to failure swings for 1R.

## Key Parameters

| Parameter | Details |
|-----------|---------|
| Bias timeframe | 4H, 1H for direction |
| Entry timeframe | 15m (rare), 5m (common), 1m ("last call") |
| Typical RR | 1:1 to 2:1 (often just 1R to maximize win rate) |
| Entry zones | FVGs, order blocks, breakers, inversions on LTF |
| Best sessions | Asia for Gold/Forex, NY premarket for NASDAQ |

## When To Use

- When directional bias is clear and draw is qualified
- After [[concepts/change-in-structure]] confirms the move
- On [[concepts/1-1-risk-reward]] setups for consistency-rule accounts

## ICT's Pyramiding Model (from ICT / Michael J. Huddleston)

ICT demonstrates an aggressive continuation approach using pyramiding -- adding multiple positions at each discount PD array as price moves toward the draw. In his $9,362 S&P trade on June 21, 2023:

1. **Initial entry**: Long at the bullish [[concepts/order-blocks|order block]] after NY lunch sell-side sweep
2. **Pyramid entries**: Added positions at each [[concepts/fair-value-gaps|inversion fair value gap]] that held as support on the 15-second chart
3. **Partials**: Took profits at each buy-side liquidity pool (relative equal highs) above
4. **Stop management**: Kept stop below the inversion FVG; did not chase it higher prematurely
5. **Target**: [[concepts/opening-range-gap]] high as the ultimate draw

ICT emphasizes that pyramiding requires deep experience -- beginners should target low-hanging fruit (the first obvious liquidity level) rather than trying to build large pyramid positions. He recommends learning continuation modularly: first master single entries with 1R targets, then gradually add partial runners, and only later attempt pyramiding.

**Corroboration**: ICT's continuation approach aligns with Z_NASD's framework (both use FVG pullbacks and order blocks for entries) but ICT adds the pyramiding dimension and uses much lower timeframes (15-second charts) for execution precision.

## Trade Entry Flowchart

```mermaid
flowchart TD
    A[Draw qualified] --> B[Pullback]
    B --> C{Timeframe?}
    C -->|15m| D[FVG/breaker]
    C -->|5m| E[FVG in 1H gap]
    C -->|1m| F[Post-reversal gap]
    D --> G{Failure swings?}
    E --> G
    F --> G
    G -->|Yes| H{Stop protected?}
    G -->|No| X[SKIP]
    H -->|Yes| I{Gap inverted?}
    H -->|No| X
    I -->|Yes| J[ENTER 1R]
    I -->|No| W[Wait]
    J --> K{Result?}
    K -->|TP hit| L[Done for day]
    K -->|Stopped| M[Lock out]
```

## Entry Timeframe Sequence

```mermaid
flowchart TD
    A[4H/1H Bias] --> B[15m Qualify]
    B --> C[5m Entry zone]
    C --> D[1m Trigger]
    D --> E[Execute]
```

## Risks & Pitfalls

- Entering continuation when the draw has already been reached
- Forcing entries during choppy/ranging conditions with no clear draw
- Ignoring session context — continuation setups work best during active sessions

## Related Concepts

- [[concepts/draw-on-liquidity]] — Provides the directional bias for continuation
- [[concepts/fair-value-gaps]] — The primary entry zones
- [[concepts/protected-stops]] — Where to place invalidation
- [[concepts/1-1-risk-reward]] — Simplified continuation for S2F accounts
- [[concepts/session-tendencies]] — Timing continuation entries with session flow
- [[concepts/kill-zones]] — Continuation entries are most reliable inside kill zone windows
- [[concepts/optimal-trade-entry]] — OTE is a specific continuation entry pattern
- [[concepts/opening-range-gap]] — ORG can serve as the continuation target

## Visual Examples

- See chart `raw/charts/HEwPCDpbMAIbAQ2.jpg` for a visual example of continuation trading on Gold GC 5m — two long entries at 4,602.2 and 4,610.3 on a pullback, riding continuation up to the exit at 4,627.8.
- See chart `raw/charts/HEMiUWnaoAICZgg.jpg` for a visual example of aggressive continuation scale-in on Gold MGC 5m — massive position built at the 4,402-4,404 zone, then scaled out at 4,418-4,437 as price continues higher.
- See chart `raw/charts/HDg_hfLaUAI7c4z.jpg` for a visual example of "staircase" continuation on NASDAQ — multiple blue-arrow entries at each pullback to an [[concepts/order-blocks|order block]], with price stepping up through 24,410, 24,470, 24,510, 24,535 toward the 24,570 draw target.
- See chart `raw/charts/HC7ZjrSaMAA7-r9.jpg` for a visual example of the 1m "last call" continuation entry on NASDAQ MNQ — short entry at the OB near 24,330 targeting continuation lower toward 24,190, matching the "last call for traders" pattern described above.

## Sources

- [[summaries/1-1-strategy-s2f]] — 15m, 5m, and 1m "last call" entry examples; continuation as highest-probability trade type
- [[summaries/trade-recaps-nasdaq-gold]] — NASDAQ premarket short and Gold Asia short continuation examples; scale-in technique
- [[summaries/draw-on-liquidity]] — Gold/Asia, USDJPY, DAX continuation examples; entry method via LTF gap pullbacks
- [[summaries/trading-journey-mindset]] — Speaker evolved from reversal-focused to continuation-focused trading
- [[summaries/ict-setups-lecture]] — ICT's pyramiding model on 15-second chart; $9,362 S&P continuation trade; low-hanging-fruit teaching philosophy