Continuity Editing

This kind of editing is naturalistic and meant to be invisible. It is designed to create a sense of realistic chronology and generates the feeling that time is moving forward. However flashbacks or flash forwards may be used but the narrative will still be seen to be progressing forward in an expected or realistic way.

Techniques used in continuity editing are:
Eye-line Match - We see the character looking at something off screen and then we cut to a shot of what they are looking at.

Match-on-action - We see a character start an action in one shot and then we see them continue it in the next. We could also see the start of an action from one perspective then the next perspective carries on the shot of the action.

Graphic match - The film maker can choose to place shots in a certain order so as to create a smooth visual transfer from one frame to another. This technique uses two shots of a similar shape consecutively.

Another important technique is the 180 degree rule:
This rule is a basic guideline that states that two characters (or other elements) in the same scene should always have the same left right relationship to each other. If the camera passes over the imaginary axis connecting the two subjects, it is called crossing the line.  

This diagrams shows the imaginary line and what happens when you cross it.