What you are doing is a simple cable stitch.
Amy has a video on this site about cabling, and I think it will give you a bettter idea of "twisting":
In the second half of the video, she is demonstrating a "right twist" in which she uses a cable needle to keep three stitches at the back of the work before knitting the second lot of three stitches 1st, and then knitting off the cable needle.
What you are doing is a twist with only 1 stitch over another stitch (instead of twisting 3 stitches over 3 stitches like in Amy's video). If you wanted to use a cable needle, you could do this:
Slip 1st stitch off LH needle onto cable needle and hold at back of work, knit next stitch and then knit the stitch off the cable needle.
But after a while you will go crazy having to keep using that cable needle. :D
Try this for a right twist if you don't get what your pattern says (I found it at http://www.knittingfool.com/pages/symbols.cfm
and it makes more sense to me):
RT - Right Twist - k2 tog, leave on needle; then insert right-hand needle between the stitches just knitted together and knit the first stitch again. Then slip both stitches from left-hand needle.
I hope this helps and doesn't confuse you more...