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Continuation Trading

Definition

Continuation trading is the execution model for trading in the direction of an established draw on liquidity. Rather than trying to pick tops or bottoms, you wait for price to pull back into a lower-timeframe 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 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 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 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 smt divergence, closed a very bearish 4H candle as a swing with 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 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: smt divergence confirmed at the highs above the swing.
• Entry: Waited for failure swings to get taken, entered short after a 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 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

When To Use

• When directional bias is clear and draw is qualified
• After change in structure confirms the move
• On 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 order block after NY lunch sell-side sweep
2. Pyramid entries: Added positions at each 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: 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

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

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

• draw on liquidity — Provides the directional bias for continuation
• fair value gaps — The primary entry zones
• protected stops — Where to place invalidation
• 1 1 risk reward — Simplified continuation for S2F accounts
• session tendencies — Timing continuation entries with session flow
• kill zones — Continuation entries are most reliable inside kill zone windows
• optimal trade entry — OTE is a specific continuation entry pattern
• 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 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

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