This paper discusses the optimal nesting problem for minimizing the scrap in continuous shape stamping processes. The shape sliding technique is used to propose a new approach, OVERLAP-and-ESCAPE, to solve the problem of continuously nesting shapes onto a metal coil of fixed or selectable width. The approach is used to construct the objective function of the mathematical model of the problem using the Simulated Annealing Algorithm to determine the globally minimal configurations for the nesting problems. Some representative cases are studied and the results are encouraging. An automatic nesting software package for manufacturing bicycle chain link blanks is also described.