A 2-0 win gave Davies a return of seven points from nine since he returned to the club, and Forest are four points off the top six with 12 games still to play.
"The confidence is growing," he said. "We have 12 games to go and we will give it our best shot. I have said to the players we go to the next match and give it a go again.
"We know where we are and what we have to do. We know what sort of team we have and we know we have to add to this team.
"We have five loanees but the chairman has said we can get more loan players in to try and fulfil the 20% extra potential that has been missing.
"There is a great spirit in the squad. A great togetherness, work ethic and the message has got across to individuals. Their work rate today was superb and we have to continue to do that.
"Nothing has been done but we have had three good performances so far."