Continuity editing is a primary style of editing in narrative cinema and television. The main purpose of continuity editing is to make the inherent discontinuity of the editing process and to establish a logical coherence between shots.
In most films, logical coherence is made by cutting to continuity, which makes clear smooth transition of time and space. However, some films take cutting to continuity into a more complicated classical cutting technique, one which also tries to show psychological continuity of shots. The montage technique takes on symbolic association of ideas between shots rather than association of simple physical action for its continuity.
Continuity editing is known as a state of editing in narrative television and cinema. The idea is to create a smooth flowing film and logical coherence through shots.
An example of one film which uses continuity editing is the matrix.
In this scene the character Neo goes from a shot from the side where he is opening his jacket to a frontal shot where you get to see what is behind his jacket, which in this case would be his guns.
In this scene, the character Neo hits the guard forward and then it changes to a back shot which gives a good continuity shot.