The Continuation Model: Trading With the Trend on NQ

Most of the LSTrades signal system focuses on reversals — catching price as it sweeps liquidity and flips direction. But there's a second scenario the system handles: when the market isn't reversing, it's continuing.

The Continuation Model (CONT) is built for that environment.

What the Continuation Model Is

A Continuation signal fires when price is trading in alignment with the established session direction — and a sweep + iFVG sequence confirms that the trend is intact.

Instead of looking for a flip, you're looking for a pause, a brief sweep of recent session liquidity, and then a resumption of the direction the market was already moving.

The core conditions:

1. A Change in State of Delivery (CISD) has already occurred in the session, establishing a directional bias
2. A liquidity sweep happens in the current session (sweeping session-level liquidity in the continuation direction)
3. An iFVG inversion confirms the entry

The key requirement that separates CONT from the reversal models: a prior sweep must have occurred earlier in the session. The CONT model is not a first-trade setup. It requires that the session's direction has already been established and confirmed.

The Role of CISD

CISD — Change in State of Delivery — is a structural concept that marks when the market shifts from one directional state to another. In the LSTrades system, CISD is evaluated on the 5-minute timeframe and indicates that the market's delivery mechanism has changed (e.g., from bearish to bullish displacement).

For a Continuation signal to be valid, a CISD must have established the session's directional bias before the CONT entry fires. If the session is bullish (CISD confirmed to the upside), a CONT signal will only fire on long setups. If bearish (CISD confirmed to the downside), only short setups qualify.

This keeps the CONT model honest: it cannot fire against the established session structure.

How It Differs From RM1 and RM2

| Feature | RM1 / RM2 (Reversal) | CONT (Continuation) | |---------|---------------------|---------------------| | Setup type | Reversal | Trend continuation | | Prior CISD required | No | Yes | | HTF FVG required | RM1: Yes / RM2: No | No | | Direction | Counter to prior sweep | Same as prior CISD | | Sweep requirement | Yes | Yes (session sweep) | | iFVG required | Yes | Yes |

The reversal models catch price changing direction. The continuation model catches price resuming after a brief pause or retracement.

A Practical Example

Here's how a CONT setup might unfold on a bullish session:

1. 9:35 AM — Price sweeps the prior day low (sell-side liquidity), reverses sharply. This is the first setup of the session — an RM2 signal fires. CISD is confirmed to the upside.

2. 10:05 AM — Price rallies to TP2 on the RM2 trade. Session is bullish.

3. 10:20 AM — Price retraces, sweeping the session low (a minor swing low formed after the initial rally). An iFVG forms on the pull-back candle. This is the second setup.

4. 10:25 AM — Price retraces into the iFVG from below. The inversion confirms. A CONT long signal fires — in the direction of the established bullish CISD.

The CONT signal is a second opportunity to participate in the day's directional move, confirmed by the prior sweep and CISD context.

Grading the Continuation Model

CONT signals use the same grading framework as the reversal models:

| Grade | Conditions | |-------|-----------| | A | Base CONT conditions met (CISD + session sweep + iFVG) | | A+ | Above + one confluence (BPR or additional structural alignment) | | A++ | Above + two or more confluence factors |

Note that CISD itself is a confluence factor in the reversal models (it adds a grade when present). For CONT, CISD is a required condition — it doesn't add a grade, it enables the model.

The Two-Trade Session Rule

LSTrades allows a maximum of two trades per session. In a session where an RM1 or RM2 fires as the first trade, a CONT can be the second trade if conditions are met.

If the first trade (RM1 or RM2) reaches TP2, the session is marked complete and no CONT signal fires — the system doesn't look for a third opportunity. If the first trade reaches TP1 and moves to breakeven, the session has one trade remaining, and a CONT setup can qualify.

This constraint keeps the system from chasing. Two opportunities per session, then step away.

When the CONT Model Is Most Reliable

The Continuation Model performs best when:

• The initial reversal (RM1 or RM2) was decisive — a clean sweep followed by strong displacement
• The CISD is unambiguous — the session direction is clear, not choppy
• The retracement sweeps a clean session swing before inverting, rather than chopping sideways

When the session has been indecisive or the initial move was weak, CONT setups carry lower conviction even when the technical conditions are met. The grade will reflect this, but it's worth noting.

Connecting the Three Models

The three models — RM1, RM2, and CONT — cover the core scenarios the NQ market presents during the NY AM session:

• RM1: Sweep with higher-timeframe FVG backing → reversal
• RM2: Sweep without HTF FVG → reversal
• CONT: Established session direction + sweep → continuation

Understanding which model fired isn't just academic. It tells you the structural story behind the signal and helps you manage the trade with appropriate context.

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For the full model picture: The Reversal Models: RM1 and RM2 Explained covers the other two signal types. What Is CISD? explains the structural concept that gates the CONT model. Or join the free Discord and watch all three models call out on live signals.