Consider this example:
\documentclass{article}
\usepackage{tikz}
\usetikzlibrary{calc}
\usetikzlibrary{arrows}
\begin{document}
\begin{tikzpicture}
\fill [orange] (0.1,0.1) rectangle (12,8);
\node[text opacity = 0] (1) at (4,8) {C3};
\node (2) [below left of = 1] {B2};
\node (3) at (4,2) {C3};
\node (4) [below right of = 1] {D4};
% connect the dots
\path[->,>=stealth]
(1) edge [bend right=20] (2)
(2) edge [bend right=20] (3)
(3) edge [bend right=20] (4)
(4) edge [bend right=20] (1);
\draw[->,>=stealth](5,2) -- (5,4);
\draw[->,>=stealth](3,4) -- (3,2);
\end{tikzpicture}
\end{document}

I have a couple of questions:
Firstly, why is it that when I specify the locations of C3, B2 and D4 do not move automatically i.e. I would hope that B2 and D4 would move to be half way between nodes (1) and (4)? How can I fix this? I know that I can simply specify 'below' for all of them but this makes the diagram too small so I was hoping of specifying the top and bottom coordinate and then have use 'bottom' to do the rest, but obviously this doesn't work.
Secondly, how can I alter the diagram so that the two arrows in the bottom of the diagram to blend into the main cycle i.e. showing that the arrows are either coming out or going into the main process?


(3)(C3) is not in any relation with the other nodes why should other nodes depend on it? By the way, the keys… of=are deprecated: Difference between "right of=" and "right=of" in PGF/TikZ — Can you show us a sketch of how your diagram should look like? – Qrrbrbirlbel Sep 08 '13 at 11:19>key is best used on a scope enclosing paths that should use a common arrow tip, otherwise one could just write-stealthinstead of->, >=stealth. In this case, simply use\begin{tikzpicture}[>=stealth]and you can then use->and<-on the paths. – Qrrbrbirlbel Sep 08 '13 at 13:30