Villa lost to the Swans over the weekend 1-0 and the boss is wary of old habits creeping back into the mentality of his players.
“We can’t take this defeat too deeply or we will seep back into that depression mode, which I don't want,” said Sherwood.
“It's picked up - and it's picked up with a few results - and they believe that what we're doing is the right way forward.”
The result will be considered a setback for Sherwood because it came after three straight wins.
The side had started to build a little bit of momentum and had started to get moving in the right direction and they remain in a relative good position in relation to the bottom three despite the result.
Sherwood is a very positive manager who has done well to improve the confidence and belief in the side and he has to carry on doing similar things.
The club and the boss now have two weeks to rest and study their next move with a vital game against Manchester United at Old Trafford after the international break.
Villa need to play on the hope that United might be a little complacent and might feel as though a bit of the pressure is off after they defeated Liverpool yesterday to create a cushion in the top four.
Villa are three points above Burnley and can still definitely improve that gap in the coming weeks.