The "in between" is controlled by the position control lever (the lever to the right of the draft control). The draft control lever adjusts for the sensitivity of the three point depth control. If you are pulling a plow in hard ground you will want the draft control in a more forward position, but if you are plowing in softer, well tilled ground, you will want the control more rearward so that the three point will adjust quicker to variations in terrain and provide more constant depth of the plow. The draft control function is affected by the top link position (while under load). If your top link is on the top hole, the draft control does not respond to terrain variations. If the top link is on the second hole the draft control becomes sensitive to terrain variation. If the top link is on the bottom (third) hole, the draft control is very sensitive to terrain variation. A secondary "feature" of the draft control lever is that while not under load the lever full forward will drop your three point about an inch lower than the lowest position available from the position control lever. Likewise when the draft control lever is full rearward it will raise your three point about an inch higher than the highest position available from the position control lever. This feature can be very convenient when hooking up implements but it can be horrific if certain implements are not checked for full travel requirements prior to use (some folks refer to this as a motion sweep). For example, I have a three point post hole digger that has a beefy boom that has a circumference 4-5 times the size of the normal top link. When I raise the post hole digger to the highest position on the position control and the draft control if full rearward, then the boom will hit the top link hook retention bracket. This situation could also pose a problem with a large top and tilt cylinder. Of course the solution is to simply remove the top link hook retention bracket. From your description, I believe the draft control is responding correctly, but to be sure you'll need to hook up a plow or maybe a box blade and make a few passes with the top link on either the second or third hole and see if the three point responds to terrain variation.