I agree with GoldenRivet about being able to spot targets long before your watch crew, at least early in a career. However, in my experience, if you keep the same crew for a long career, and continue to hand out medals and promotions as they are available (at least I think that's the secret), the watch crew will get better and better at spotting ships. It can get to the point where they are calling out ships long before I can see them.
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