Coding quantized transform coefficients as occur in image compression combines a position identifying method to identify the relative position of clusters of consecutive non-zero-valued coefficients, an amplitude event identifying method to identify amplitude events in the clusters of non-zero-valued coefficients, and a coding method to code the position events, amplitude events, and signs of the amplitudes in the clusters. The method is particularly applicable to a series of quantized transform coefficients where clusters are likely to occur.