Dalglish has guided Liverpool to Carling Cup glory this season and his side are in the semi-finals of the FA Cup.
“There is too much expectation at Liverpool,” said Houllier. “They expect you to win the Champions League every year. That won’t happen.
“The obsession is the league. Rafa Benitez finished second and I finished second once, but for all the cups we won, they wanted us to win the league.”
“They won the League Cup, the same way we did in 2001,” said the Frenchman. “It’s a good sign for the future. I think he’s heading in the same direction, just give him some time.
“Kenny isn’t alone – he has a whole staff with him and they trust him.
“In football, you can go from the attic to the basement very quickly, so one day he is the hero and the next day he is the zero. You have to be careful.
“Liverpool need another year to kick in. They have had a lot of recruitment done and a lot of problems, so give him some time.
“There was a time when David Moyes was criticised and Arsene was criticised – see where they are now. It’s a roller-coaster.”
