This switch module is often known as a collision, impact or limit switch. It is used to detect when a robotic vehicle collides with an object, limit switches for detecting when something like a 3D printer head has reached its travel limit.
A microswitch with a lever is mounted on the module. The module's output is generally maintained HIGH by a 10K pull-up resistor. The output is dragged to the ground and becomes LOW when the switch lever is pressed, and the LED on the module lights up.
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