Filter

AAA

DEFINITION of 'Filter'

A set of criteria used to help an investor narrow down which financial instruments or conditions of financial instruments are the most profitable.

INVESTOPEDIA EXPLAINS 'Filter'

Most beginner investors feel overwhelmed by the large number of financial products available in each type of market. Filters help narrow down the investor's or trader's search, so the decision of which securities to trade is less complicated. Filters are not limited to finding companies by stock screeners; technical analysis tools can also help an investor or trader find a particular financial instrument. For example, if a trader wants to find financial instruments that are trading above their 200-day moving average, he or she can use a filter to find such instruments.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Simple Moving Average - SMA

    A simple, or arithmetic, moving average that is calculated by ...
  4. Stock Screener

    A tool that investors and traders can use to filter stocks based ...
  5. Mass Index

    A form of technical analysis that looks at the range between ...
  6. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
Related Articles
  1. Getting To Know Stock Screeners
    Investing Basics

    Getting To Know Stock Screeners

  2. Introduction to Types of Trading: Fundamental ...
    Trading Strategies

    Introduction to Types of Trading: Fundamental ...

  3. An Introduction To Ichimoku Charts In ...
    Forex Education

    An Introduction To Ichimoku Charts In ...

  4. 3 Reasons Not To Trade Range Breakouts
    Active Trading

    3 Reasons Not To Trade Range Breakouts

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center