First, notice that an outline usually starts with the largest or most important idea and then progresses down to smaller or less important ideas.
Second, notice how each heading is indented.
Headings of equal rank are indented an equal distance from the margin.
Third, if a heading runs from one line to the next, it is indented so that it starts directly below the first word of the preceding line.
Fourth, notice that no punctuation is needed at the end of the topics in a topic outline.
Finally, notice that periods are used after numbers and letters.
For fifth and lower ranks, parentheses are used instead of a period.