Claudio Ranieri insists Watford are moving in the right direction despite Sunday's loss to Arsenal.
The Hornets went down 1-0 at the Emirates and now sit two points above the drop zone.
But Ranieri has seen enough to be confident in his team's current situation.
"I'm very satisfied with our performance," Ranieri told the club's website.
"The players worked hard together and we had chances to come away with a draw.
"It was a very tactical match in the first half, and Arsenal had some really good opportunities. We conceded a penalty but Ben Foster made a great save.
"After they scored their goal there was a lot more space on the pitch, and we made some mistakes on the counter-attack that we'll go away and work on.
"I know we have lost too many matches, but for me things are positive. My players were fighting to draw the game until the end. My players are learning my methods and we're in a good place."
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