This stitch is just a variety of the running stitch, which I have named. It incorporates the technique of Chinese stitch or Pekinese stitch. This is a very decorative stitch and can be experimented with threads of various colors over borders. Close layers of this stitch can create wonderful effects on a pattern.

You need to know the running stitch before doing this stitch. The knowledge of the pekinese stitch will be very helpful.
looped_running_stitch_1      looped_running_stitch_2
Fig 1: Lay the foundation by doing a running stitch.
Take a contrastign colored thread and bring it out from near the first running stitch.
  Fig 2: Start following the pekinese stitch technique. Take the needle in through the second stitch and come out through the first, making a loop.
looped_running_stitch_3   Fig 3:  Continue this action of ‘looping’ using the running stitch foundation, as illustrated.
Fig 4: Finish up the pattern for it to look like this.