An extended coefficient resolution range is provided in an adaptive filter arrangement by utilizing several filters, in combination, to represent the extended resolution range. The coefficients of a first filter represents a high portion of the extended range, while the coefficients of the second filter represent low portions of the extended range. The two filters operate in parallel to filter an input signal, and the outputs of the filters are combined to produce the filtered signal. A low portion of the coefficients of the first filter overlap an upper portion of the coefficients of the second filter. The coefficients of the first filter are periodically updated from the overlapping portions of the coefficients of the second filter, after which the overlapping portions of the coefficients of the second filter are reset. In accordance with another aspect of the invention, the amount of overlap may be adjusted to dynamically change the resolution range of the filter. The coefficients of the first and second filters are capable of variably overlapping to expand or contract the resolution range in response to changes in the system being monitored. The degree of overlap can also be adjusted to provide an appropriate resolution range corresponding to when the system is stable. An adaptive process is used to up date filter coefficients.