Hodgson happy with quality of Liverpool squad
Last week's first half against West Ham was as well as they have played all season - albeit against benign opposition - and took their haul in the last six matches to 13 points.
There have been a couple of blips, the draw at Wigan and defeat at Stoke, but otherwise there has been a gradual improvement.
"Basically I know what my best team is - the best team is more than 11 players," said the Reds boss, who accepts his view may have been tainted by poor results.
"I could have a best team and say one week it is with X and another week it is Y but it still would be my best team because the players are interchangeable.
"I have a very clear picture now of what we should and need to be doing and the squad is stronger and getting stronger.
"It was probably stronger than I realised at certain stages in the early part of the season when we were losing games.
"Hopefully that will mean we won't need to do too much in the January transfer window because it might be nice if we can keep all of these players fit and well and add the odd player or two who can help us.
"I have a lot of faith in the players who are playing at the moment because in the last two or three weeks we have put in some good performances."