The horizontal stack is set up with three handlers and four cutters arranged horizontally across the field.
On each side of the field, the two cutters stagger their cuts: one cuts in while the other cuts out. Here #6 is cutting in for the disc while #7 is running (probably faking) a deep cut. The inner two cutters also stagger their cuts, so that no more than one person runs in at any one time.
Since #6 didn't get the disc, she runs back out, leaving room for #5 and #7 to cut in. #4 prepares to make a deep cut if necessary (this is a key duty for the cutter on the break-side sideline).
If the handler doesn't throw to one of the cutters, he'll swing it to another handler.
In this situation, cutter #7 now runs in and gets open.
The handler runs up to get a dump. This is cutter #4's cue to make a deep cut if it looks like the throw will be open.
Handler #3 can make a deep throw to cutter #4. But everyone else is also moving up the field to reform the stack if that throw doesn't happen.