Don't practice sight-reading! Practice reading music instead. Sviatoslav Richter has an extremely proficient sight-reading ability according to his teacher Neuhaus. Richter has a habit of reading music, step by step meticulously careful reading of music. Liszt is well known for his abnormal sight-reading skill. He also had the habit of carefully reading music, lots of music.
Insight Number One
Having said, I discovered today a way to read music. For each measure, scan from top to bottom to see what notes are used. From top to bottom, not left to right. After collecting the notes, which you should remember are different pitches, and if you can, try to sound the pitches in the mind, take a mental visualization of their keys corresponding to the keyboard.
Then mentally play those keys from the left to the right.
Insight Number Two
When practicing a measure on the piano, press down all the keys that are used in this measure. They for good probability are broken chords. Then play normally from left to right. But now we play with very different perspective--not purely horizontally but from harmonic structure.
When this approach is practiced as a routine, chord pattern recognition and harmony cognition will greatly improve!