The teacher handbook is intended to provide a complete set of simple diagnostic testing materials in reading for children in kindergarten through third grade. Tests focus on such skill areas as visual discrimination and auditory memory. Included are lists of materials and strategies to be used after the students have been tested and their special needs determined. Also provided are suggestions on observations of behavior, classroom management and tutoring. A checklist for the observation of student behaviors and learning processes is presented along with a group screening form for recording results during the active testing process. It is recommended that folders be prepared for individual children and a prescription format is given. (GW)