function myFunction() {
var file = document.getElementById('file').files[0];
var reader = new FileReader();
// it's onload event and you forgot (parameters)
reader.onload = function(e) {
var image = document.createElement("img");
// the result image data
image.src = e.target.result;
document.body.appendChild(image);
}
// you have to declare the file loading
reader.readAsDataURL(file);
}
http://jsfiddle.net/Bwj2D/11/ working example