Prediction is narrowed down by:
- Spacing - Your relation to your opponent dictates what moves they can actually use. Finding the optimal distance between your opponent to reduce options is important.
- Position - The options a player has are relative to the location in which they are compared to you. If they are on a platform, and you are below them, or if they are in the air falling [or ascending] the choices they have are significantly impacted. Interact only when the situation is favorable to you.
- Risk vs Reward - Shield->Spot Dodge->Jabs->Grabs->Tilts->Aerial->Smashes
- Percentage - The closer to death you are, the more prone to kill moves [typically slower] will be used. The higher you are in percent, the more likely you are to shield rather than spot dodge. Conversely, the lower you are, it is far great that you'll spot dodge to avoid a grab setup.
- Match Ups - Every character has a flow chart to how they wish to handle interactions. Falco wants to get a grab at low percent, etc. You must use the knowledge of what your opponent has been conditioned to do against them.
- Identify blind spots. - Example, DK's fair is horrible. If he's running at you, his options are limited to turn around bair, shield, or grab. All of these options are beatable.
- Identify the player - Best, fastest, safest, or first option players are all relatively easy to spot if you know what to look for.
- Conditioning. - Train your opponent to respect an option you have. Example, at low percents Mario can up tilt many characters to 30%. After doing that for the first stock, your opponent is going to try to jump / air dodge, this can set up a down throw or a uair string.
Overall, the more you know about the game and the more you discern from the player, the easier they are to predict.