In this paper we propose a new theory of the Gestalt law of good conti
nuation. In this theory perceptual processes are modeled by an exponen
tial pyramid algorithm. To test the new theory we performed three expe
riments. The subject's task was to detect a target (a set of dots arra
nged along a straight or curved line) among background dots. Detectabi
lity was high when: (a) the target was long; (b) the density of target
dots relative to the density of background dots was large; (c) the lo
cal change of angle was small along the entire line; (d) local propert
ies of the target were known to the subject. These results are consist
ent with our new model and they contradict prior models. (C) 1997 Else
vier Science Ltd.