In this paper, we propose a method of image sequence encoding called a DWT-MC (Discrete Wavelet Transform and Motion Compensation) using the wavelet transform. In this method each image of a given image sequence is decomposed into three-levels multi-resolution analysis (MRA). From the MRA of the image 64-dimensional vectors are constructed and motions are detected using the sequences of vectors. The DWT-MC shows more efficient encoding performance than the MC-DCT (Motion Compensation and Discrete Cosine Transform) method.