Beginning with a square original picture...

the low pass channel is generated by removing every odd pel on every even
line and every even pel on every odd line. The result is a picture with
half as many pels as the original. Here it is shown rotated by 45 degrees
with the diagonal lattice closed up onto a continuous square lattice (so
it can be displayed without gaps).

The intervening pels from the original picture are predicted from this
"lowpass" band, and the residue is coded as a difference signal. The
difference image is
Next the process is repeated on the "diamond" lowpass band to
yield another lowpass/highpass pair.


This pair are on a true square lattice because they contain one pel for
every four in the original picture.
The process continues for eight bands, of which two more are shown here:




Of course, only the smallest/coarsest L band is coded; the decoder derives
the others by upsampling L bands and filling in information from the
appropriate H bands.