Referring to the below given circuit diagram for the proposed simple touch sensor switch, we can see that the entire design is built around the IC 4017 which is a 10 step johnson's decade counter divider chip.
The IC basically consists of 10 outputs, starting from its pin#3 and randomly ending at pin#11, constituting 10 outputs which are designed to produce a sequencing or shifting high logics across these output pins in response to every single positive pulse applied at its pin#14.
The sequencing does not need to finish at the last pin#11, rather could be assigned to stop at any desired intermediate pinout, and revert to the first pin#3 to initiate the cycle afresh.
This is simply done by connecting the end sequence pinout with the reset pin#15 of the IC. This makes sure that whenever the sequence reaches this pinout, the cycle stops here and reverts to pin#3 which is the initial pinout for enabling a repeat cycling of the sequence in the same order.
For example in our design pin#4 which is the third pinout in the sequence can be seen attached to pin#15 of the IC, implies that as the sequence jumps from pin#3 to the next pin#2, and then to pin#4 it instantly reverts or flips back to pin#3 to enable the cycle again.
This cycling is induced by touching the indicated touch plate which causes a positive pulse to appear at pin#14 of the IC each time it's touched.
Let's assume at power switch ON the high logic is at pin#3, this pin is not connected anywhere and is unused, while pin#2 can be seen connected with the relay driver stage, therefore at this moment the relay stays switched OFF.
As soon as the touch plate is tapped, the positive pulse at pin#14 of the IC toggles the output sequence which now jumps from pin#3 to pin#2 enabling the relay to switch ON.
The position is held fixed at this point, with the relay in the switched ON position and the connected load activated.
However as soon as the touch plate is touched again, the sequence is forced to jump from pin#2 to pin#4, which in turn prompts the IC to revert the logic back to pin#3, shutting of the relay and the load and enabling the IC back to its standby condition.