This paper presents the simulation of a new modulation scheme for passive RFID systems. The proposed modulation scheme can be used to achieve minimum RFID tag chip size with low power consumption simultaneously. The modulation scheme is tested by a carrier of 900MHz and data rate of 20Kbps. The simulation results have shown that the proposed modulation scheme reserves the continuity of the carrier signal, such as FSK & PSK. Meanwhile, the proposed modulation scheme can be detected by a low power consumption demodulator, such as OOK & ASK.