for that type of charger the led should transition from red to blue, and from memory it charges one cell at a time (ie the led's should change 1 at a time)
however, my caveat for this is i had the exact same charger and it killed one of my LiFe batteries when one of the charging circuits died after about 6 months use (so it was only charging 2 out of 3 cells), and i've heard of about half a dozen other instances on here of folk having the exact same issues, so i would advise you consider ditching it for a proper charger like the much reccommended imax B6