Libanomancy
Libanomancy, the art of reading smoke from smoldering incense or fires, was an ancient Babylonian practice, but not much information remains. Only two ancient clay texts describing this technique have survived the thousands of years that seperate its earliest practitioners from our culture.
We do know that the censer was held on the diviner's lap. An aromatic plant material (usually cedar shavings) was tossed onto the live coals in the censer, and the future was divined by the smoke's behaviour.
Divination For Beginners
Reading The Past, Present & Future
Scott Cunningham
ISBN0-7387-0384-2