I am trying to understand why the rational numbers are not continuous.
Given two rational numbers $a$ and $b$, I can always find a number $c = \frac{a+b}{2}$ between these two numbers. So when I plot the rational numbers as a line, this is a steady line (unlike natural numbers, which are obviously not continuous). Why are they not continuous?
You argue that the integers are "not continuous", which means that they are a disconnected set. By the same reasoning the rational numbers are disconnected, see http://www.proofwiki.org/wiki/Rational_Numbers_are_Totally_Disconnected/Proof_1.