 
Get the engine up to running temperature. I am doing this on a 196 OHV AMC engine, and so I need to block open the carburetor:
I used a piece of synthetic molding. The cool thing about this is that you can break off the correct size and there aren't any wood splinters. Remove all of the spark plugs and attach the end of the compression tester to the spark plug hole in the head. The spark plugs can give you a clue as to what might be happening if you have compression problems, so note what plugs come from what cylinder. My tester screwed into the hole:
Crank the engine until the gauge doesn't move any more:
The compression is good on this cylinder. Write down the results for each cylinder.
Consult your technical service manual for the correct compression values and special procedures.
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