A) How is it formed?
Affirmative
Iam / 'mgo + ing
He-She-Itis/ 'sgo + ing
You-We-Theyarego + ing

Negative
Iam not/ 'm notgo + ing
He-She-Itis not / isn'tgo + ing
You-We-Theyare not / aren'tgo + ing

Affirmative
AmIgo + ing
IsHe-She-Itgo + ing
AreYou-We-Theygo + ing

Short answeres
YesIam
YesHe-She-Itis
YesYou-We-Theyare
NoIam not
NoHe-She-Itisn't
NoYou-We-Theyaren't

The present continuous is formed with the Present of the verb be + ing.

B) When is it used?

1) To describe things that are happening now:
e.g.
We’re watching TV.
[Stiamo guardando la TV.]

What are you doing at the moment?
[Cosa stai facendo ora?]

2) To describe things that are happening during this period (not necessarily at this precise moment)
e.g.
He’s living in London at the moment.
[Per ora vive a Londra.]
He usually lives in Italy, but at the moment he’s living in London. This is a temporary action.

Are you working at the moment? No,they’ve sacked me!
[Lavori per ora?No, mi hanno licenziato]
He usually has a job, but at the moment he’s unemployed.

3) To describe changes that are happening during this period with verbs like: increase; fall; rise; slow down; go up; etc…
e.g.
The price of petrol is going up due to the war in Iraq.
[Il prezzo del petrolio sta aumentando a causa della guerra in Iraq.]

Exceptions

never use the –ing form with state verbs. (See Unit 1).
Il Present Continuous inglese corrisponde all’italiano “stare + gerundio” (sto andando ecc.)
si devono sempre usare le forme contratte nell’inglese informale (conversazione, lettere di tipo personale, e-mails ecc).