To me, price closing 'on the boundary' of a lateral seems a very different thing to price 'breaking out' of a lateral. And bear in mind that not everything that appears to be a lateral is a lateral.
Under the current operational definition, a lateral does not exist in the area in highlighted . However, once formed, a lateral is killed by two consecutive closes outside of it unless a formation forms. Additionally, a close on the line of a lateral is considered to be "inside" the lateral.
IMO, you have to begin with asking yourself: what kind of data am I seeking from the end of lateral, so I am sorry if my response will add to your confusion. Even though my annotations often contain laterals of some sorts, I attempt to continue to follow the advice given to me last year: Where you would normally have placed a lateral, you must now use tapes. As such I no longer seek any data from the annotated laterals (except to determine when p2 to p3 movement ends, for which purposes an IBGS on increasing volume, two consecutive closes outside or OB will do the job) - I believe that gaussians and trendlines represent sufficient and all encompassing set of data, from which one can arrive at sequence completion points on the same fractal. Additionally, different laterals mean different things. The following suggestion with respect to tapes: I encourage you to understand what a tape does, rather than, seek 'rule sets' for tape creation. Altering one's thinking ever so slightly can often show much more than simply how to 'define' a tape., works for laterals just as well, imo.
What Guava said. I would add that there are no laterals at all on the section of chart you posted. The "refined version" of lateral movement, the high and low of the 2nd and 3rd bars must be contained within or equal to the 1st bar's high and low. Use the laterals to help see faster fractal sequences and sequences within the laterals. See Spyder's last posted chart with a few notes added for examples:
Glad you brought that chart up again. Could someone please explain the "taping to outside bars" (numerous examples in Spyder's chart just posted by Ezzy)? It doesn't seem to follow from anything Jack has taught, but appeared one day and was quietly absorbed into the method. Where are points 1, 2 and 3 in such tapes and which line is the rtl? Didn't Jack say start over after an outside bar, or did I miss something? Why is this not classed as an "invention"?
It was the 4th of Jack's seven cases. Except in the drawing it doesn't show the cloned TL. http://www.elitetrader.com/vb/attachment.php?s=&postid=1999918
Example attached with both trendlines. Can't answer your question about points 1,2,3 on this type of tape. Just setting the direction of the tape as far as I know.