diff --git a/README.md b/README.md
index 6f51124..4f502f9 100644
--- a/README.md
+++ b/README.md
@@ -19,12 +19,12 @@ Activating NextAction
 
 Sequential list processing
 --------------------------
-If a list ends with `_`, the top level of tasks will be treated as a priority queue and the most important will be labeled `@next_action`.
+If a project or task ends with `_`, the child tasks will be treated as a priority queue and the most important will be labeled `@next_action`.
 Importance is determined by order in the list
 
 Parallel list processing
 ------------------------
-If a list name ends with `.`, the top level of tasks will be treated as parallel `@next_action`s.
+If a project or task name ends with `.`, the child tasks will be treated as parallel `@next_action`s.
 The waterfall processing will be applied the same way as sequential lists - every parent task will be treated as sequential. This can be overridden by appending `_` to the name of the parent task.
 
 Executing NextAction
diff --git a/nextaction.py b/nextaction.py
index 20206d0..5854830 100755
--- a/nextaction.py
+++ b/nextaction.py
@@ -27,6 +27,8 @@ def get_subitems(items, parent_item=None):
                 found = True
             if item['indent'] == parent_item['indent'] and item['id'] != parent_item['id']:
                 return result_items
+            elif item['indent'] == required_indent and found:
+                result_items.append(item)
         elif item['indent'] == required_indent:
             result_items.append(item)
     return result_items
@@ -85,6 +87,28 @@ def main():
         elif name[-1] == args.serial_suffix:
             return 'serial'
 
+    def get_item_type(item):
+        """Identifies how a item with sub items should be handled"""
+        name = item['content'].strip()
+        if name[-1] == args.parallel_suffix:
+            return 'parallel'
+        elif name[-1] == args.serial_suffix:
+            return 'serial'
+
+    def add_label(item, label):
+        if label not in item['labels']:
+            labels = item['labels']
+            logging.debug('Updating %s with label', item['content'])
+            labels.append(label)
+            api.items.update(item['id'], labels=labels)
+
+    def remove_label(item, label):
+        if label in item['labels']:
+            labels = item['labels']
+            logging.debug('Updating %s without label', item['content'])
+            labels.remove(label)
+            api.items.update(item['id'], labels=labels)
+
     # Main loop
     while True:
         try:
@@ -100,38 +124,50 @@ def main():
                     items = sorted(api.items.all(lambda x: x['project_id'] == project['id']), key=lambda x: x['item_order'])
 
                     for item in items:
-                        labels = item['labels']
 
                         # If its too far in the future, remove the next_action tag and skip
                         if args.hide_future > 0 and 'due_date_utc' in item.data and item['due_date_utc'] is not None:
                             due_date = datetime.strptime(item['due_date_utc'], '%a %d %b %Y %H:%M:%S +0000')
                             future_diff = (due_date - datetime.utcnow()).total_seconds()
                             if future_diff >= (args.hide_future * 86400):
-                                if label_id in labels:
-                                    labels.remove(label_id)
-                                    logging.debug('Updating %s without label as its too far in the future', item['content'])
-                                    item.update(labels=labels)
+                                remove_label(item, label_id)
                                 continue
 
-                        # Process item
-                        if project_type == 'serial':
-                            if item['item_order'] == 1:
-                                if label_id not in labels:
-                                    labels.append(label_id)
-                                    logging.debug('Updating %s with label', item['content'])
-                                    item.update(labels=labels)
-                            else:
-                                if label_id in labels:
-                                    labels.remove(label_id)
-                                    logging.debug('Updating %s without label', item['content'])
-                                    item.update(labels=labels)
-                        elif project_type == 'parallel':
-                            if label_id not in labels:
-                                logging.debug('Updating %s with label', item['content'])
-                                labels.append(label_id)
-                                item.update(labels=labels)
+                        item_type = get_item_type(item)
+                        child_items = get_subitems(items, item)
+                        if item_type:
+                            logging.debug('Identified %s as %s type', item['content'], item_type)
 
-            api.commit()
+                        if item_type or len(child_items) > 0:
+                            # Process serial tagged items
+                            if item_type == 'serial':
+                                for idx, child_item in enumerate(child_items):
+                                    if idx == 0:
+                                        add_label(child_item, label_id)
+                                    else:
+                                        remove_label(child_item, label_id)
+                            # Process parallel tagged items or untagged parents
+                            else:
+                                for child_item in child_items:
+                                    add_label(child_item, label_id)
+
+                            # Remove the label from the parent
+                            remove_label(item, label_id)
+
+                        # Process items as per project type on indent 1 if untagged
+                        else:
+                            if item['indent'] == 1:
+                                if project_type == 'serial':
+                                    if item['item_order'] == 1:
+                                        add_label(item, label_id)
+                                    else:
+                                        remove_label(item, label_id)
+                                elif project_type == 'parallel':
+                                    add_label(item, label_id)
+
+            logging.debug('%d changes queued for sync... commiting if needed', len(api.queue))
+            if len(api.queue):
+                api.commit()
 
         if args.onetime:
             break