Goals from Sam Baldock, Jamie Murphy and Anthony Knockaert completed a 3-0 victory at the Amex and saw Albion leapfrog Newcastle at the top of the table.
It sets up a key clash with the previous leaders on Tuesday night, but before that Hughton said he was delighted with the performance against Reading.
He said: "It's up against one of the best teams in this division, they do what they do very well and there were periods in that first half where it was going to be about the team that scored first would have the edge and the advantage.
"We knew if we scored first then they would have to perhaps come out a bit more and take a few more chances and I think that's how it panned out. It enabled us to get the second and third goals.
"We had to defend very well as they still get in some good areas, the two full-back are very expansive and Garath McCleary and George Evans get in some good areas. What we had to be was compact enough as when they got in those areas it didn't result in really good opportunities.
"They did it once in the first half where David Stockdale had to make a really good save and the fear was as the game opened up they could do that more.
"With the way that they play, the advantage I think is with them having to force the game a little bit, they would leave gaps and we would capitalise.
"After by our standards a difficult period, we are on the back of two very good performances. One away from home at Barnsley and one at home today. They are two very good performances that are certainly more like us.
"We know out levels will have to be high on Tuesday to beat Newcastle as any team would have to be. If we can produce anything like the performance we did today, then we will give ourselves a chance."