
When a perfect transmitter and receiver (i.e., infinite receiver bandwidth with zero noise characteristics and jitter), and a perfect transmission media (i.e., no dispersion and nonlinearites) are used, the received eye diagram is shaped as a perfect rectangular. A square bit stream (i.e., series of symbol ‘1’s and ‘0’s) is sliced into sub-bit stream with predetermined eye intervals (i.e., several bit periods), and displayed through bit analyzing equipment (e.g., digital channel analyzer), overlapping the sliced sub-bit stream in order to obtain the eye diagram.

An eye diagram provides a simple and useful tool to visualize intersymbol interference between data bits.
