Unlike Ping and Traceroute, Torch does not generate, send or receive packets. However, as a network monitoring tool, it is used to monitor the network and see how packets are moving between different IP hosts on your network.
For instance, while Ping and Traceroute determine connectivity and packet routes, respectivly, by sending pakcets over your network, Torch can follow these packets and tell you where a packet where a packet is being generated, where it is going, and where it is possibly being dropped.
Think of Torch exactly as its name suggests: Shining a light on an otherwise complex network to tell you exactly where the packets are and where they are going. You can read more about Torch on MikroTik's Wiki for a better understanding.