An encoder comprising predictive coding means for encoding electronic signals input thereto is disclosed. The predictive coding means is adapted to operate in a first high prediction order mode and in a second lower prediction order mode. The predictive coding means operates in the first and second modes in dependence on an input electronic signal comprising a transient signal. Preferably, the second mode comprises a transient recovery sequence of prediction orders. The transient signal detector determines predictive coding gain as well as a difference in predictive coding gain for a sequential input signal exceeding a threshold. The prediction orders are gradually increased for subsequent signals until the first mode (high) prediction order is attained. A transmission of electronics signals provides for an indication of initiation of a second mode for the predictive coding. Circuitry is included for reception of the second mode initiate signal. There is also disclosed a decoder for decoding signals encoded by the encoder.