Plugs out and throttle wide open.
Generally, the engine should be warmed up to get max readings.
Crank the engine over until the needle won't go any higher (this should take no more than 5 or 6 crank-turns on most cars).
Note: Here's something I do which is a bit more work.
I crank the engine as above but cold and record the readings.
Then I crank the engine after it is warmed up and repeat the compression test.
I have found that if the rings are bad, there will be a significant change in PSI from hot to cold.
If measured PSI is lower than spec and not too much different from hot to cold, the problem is valves, cam lobes, cam timing, head gasket or cracked head/block/piston.
Be sure valves are adjusted prior to checking compression. An alternate idea which can provide more info is a "leak-down" test, but many of us may not have the equipment to do this.