A method of image coding comprising: (a) wavelet transforming a portion of a digital image into hierarchical trees of coefficients; (b) for a first tree of said hierarchical trees and for a first cluster of children nodes derived from a first parent node of said first tree, after encoding said first parent node, encoding a value and tree indication for each of the children nodes in said first cluster and: (i) skipping said value and tree indication when said encoding of said first parent node so indicates; (ii) indicating significance of descendent nodes using said tree indication for a first or subsequent one of said children nodes; (iii) indicating significance of said first or subsequent one of said children nodes using said tree indication for said first of said children nodes; (iv) skipping said value and tree indication for said first or subsequent one of said children nodes when determinable from encoding of the other of said children nodes of said first cluster (v) repeating steps (i) to (iv) for each of the children nodes in said first cluster; and (vi) omitting said tree indication if said children nodes in said first cluster have no descendent nodes; (c) repeating said foregoing steps (b) for a second, third,..., and Nth cluster of children nodes derived from a second, third,..., Nth parent node of said first tree; (d) repeating said foregoing steps (b) & (c) for a second, third,..., and Mth tree of said hierarchical trees. (a) wavelet transforming a portion of a digital image into hierarchical trees of coefficients; (b) for a first tree of said hierarchical trees and for a first cluster of children nodes derived from a first parent node of said first tree, after encoding said first parent node, encoding a value and tree indication for each of the children nodes in said first cluster and: (i) skipping said value and tree indication when said encoding of said first parent node so indicates; (ii) indicating significance of descendent nodes using said tree indication for a first or subsequent one of said children nodes; (iii) indicating significance of said first or subsequent one of said children nodes using said tree indication for said first of said children nodes; (iv) skipping said value and tree indication for said first or subsequent one of said children nodes when determinable from encoding of the other of said children nodes of said first cluster (v) repeating steps (i) to (iv) for each of the children nodes in said first cluster; and (vi) omitting said tree indication if said children nodes in said first cluster have no descendent nodes; (i) skipping said value and tree indication when said encoding of said first parent node so indicates; (ii) indicating significance of descendent nodes using said tree indication for a first or subsequent one of said children nodes; (iii) indicating significance of said first or subsequent one of said children nodes using said tree indication for said first of said children nodes; (iv) skipping said value and tree indication for said first or subsequent one of said children nodes when determinable from encoding of the other of said children nodes of said first cluster (v) repeating steps (i) to (iv) for each of the children nodes in said first cluster; and (vi) omitting said tree indication if said children nodes in said first cluster have no descendent nodes; (c) repeating said foregoing steps (b) for a second, third,..., and Nth cluster of children nodes derived from a second, third,..., Nth parent node of said first tree; (d) repeating said foregoing steps (b) & (c) for a second, third,..., and Mth tree of said hierarchical trees.