The indentations are tab lengths. In other words, one level of indentation is one press of a tab key and two levels is two presses and so on. The command continue is at two levels of indentation.

I guess the recommended way of indenting in python is four spaces per level, but I used tabs. Sue me

This made me laugh out loud on StackOverflow:

Thus spake the Lord: Thou shalt indent with four spaces. No more, no less. Four shall be the number of spaces thou shalt indent, and the number of thy indenting shall be four. Eight shalt thou not indent, nor either indent thou two, excepting that thou then proceed to four. Tabs are right out. -- Georg Brandl