Match on action is used to show the flow of action when a camera angle/shot changes. Film makers make it seem that the action continues uninterrupted. It is an editing technique that shows that the action in the first shot matches the action in the following shots as shown in the example underneath.
https://www.youtube.com/watch?feature=player_embedded&v=laUPi7MPOSQ
Match on action creates the impression of a sense of continuity. This is because the action flows through a "visual bridge". It draws attention away from minor cutting or continuity issues.
Good explanation and images.
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