Right slanting decrease, not twisted
This would be k2tog in American knitting, or to reverse it for combination knitting would be ssk. But in this case only the second stitch is turned around. The first stitch, which will be the bottom stitch in the decrease and hidden, is not turned.
Knit stitch in Garter

This is how you knit in Garter stitch, which is the same as in American knitting because the leading leg of the stitch is in front of the needle, since there are no purl rows to turn the stitches around. 
This confused the hell out of me when I was a teenager and I saw one of my friends knitting garter stitch booties. I never had knitted garter stitch. My grandmother taught me stockinette stitch first. It's really easy to learn for kids in this method. You just remember this:
Knit = back/back
Purl = front/front
That is, to knit, you hold the working yarn in the back, and you insert the right needle into the back of the stitch. To purl, you hold the working yarn in front, and you insert the right needle into the front of the stitch. I personally think this is a great way to teach kids to knit. Just make sure you tell them what's unusual about it before they go off trying to knit from "normal" knitting books so they don't get confused like I did!
Basically, to knit without twisting your stitches, you just always go into the leading leg of the stitch. It doesn't matter if it's in front of or behind the needle.


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