The Terriers will bid to kick-start their Premier League campaign at Leicester on Saturday having taken just two points from their first five matches, but Wagner is convinced confidence has not been affected.
“Is the mood negative because of the start of the season? No, absolutely not,” he said. “We know we should have done better so far.
“We have faced some criticism and we are the only ones who can turn that round. We know performance-wise in the last games we have been solid. We are focused on our work and this is how it is.
“Of course for every team, points and wins help, but it is not the case that we are not confident. Our performances were good in the last games to make us not low on confidence, but we have to perform on this level consistently.”
Wagner highlighted the performance of left-back Chris Lowe against Palace as testimony to the strength of belief.
“I think he is a very good example of the positivity we have in our team as well,” Wagner added. “Chris Lowe consistently performs on a very high level.
“He had to adapt last season to the Premier League, but he has done great. He’s started the season very well.
“We have Phil Billing, who has stepped up to another level. Aaron Mooy consistently performs at another level after the World Cup.
“Rajiv van La Parra is performing consistently on another level. We have, for sure, a lot of individual positives, even if we missed on points and goals.
“This is where we get our confidence from. Now we have (Jonathan Hogg) Hoggy back in our team after his suspension. These are examples of why our mood is still very good.”