
(source: yworks.com)
Simple hierarchical layout algorithm is visualisation of the ASAP sheduling algorithm (check this lecture [link]), so it'd be better to read it, on my view.
BTW your picture is not fully correct - the proposed visualisation is only one of the possible ones.
Imagine, that you have list of node and you know dependence between them.
Node list
node4
node2
node5
node1
node3
node6
Dependency list
node1 -> node2
node2 -> node4
node3 -> node5
node1 -> node3
node3 -> node6
- As your first step, you should find nodes with no dependance - this
would be your layer#1 nodes. Draw them.
- Then find all nodes that depends on layer#1 nodes - this would be your layer#2 nodes.
And the same thing for the layer#2 and etc.
Finally, you'll get:
node1
/ \
node2 node3
/ / \
node4 node5 node6
This will work only for non-cyclic directed graphs. For the undirected ones you should modify the algorithm a bit (take random node as root), but the main idea, I think, is understandable.