One has to realize the fact that, it is not the waking entity (you) which witnesses the three states. The formless soul is the witness of the coming and going of the three states. The soul is immutable. The soul is unaffected by the happening within the three states because the three states are mere mirage created out of the formless soul, which is present in the form of consciousness. The soul or consciousness is the innermost self.
The individual experience within the dream is a reality within the dream. Therefore waking reality is also is reality within the waking. This waking is parallel dream and dream is parallel waking. Only when self-wakes up in waking the dream becomes unreal. When the self-consciously wakes up in its formless non-dual true nature in the midst of waking experience then all the three states are mere mirage created out of its formless non-dual true nature.
The form time and space within the dream are falsehood when waking takes place. Similarly the form, time and space of the waking are also falsehood when wisdom dawns. The wisdom dawns only when one realizes the self is neither the waking entity nor the dream entity. Thus it is erroneous to judge and reason and conclude the ultimate truth on the base of waking entity and waking world because waking experience itself is illusory.
Suppose you were holding the same view in the dream, all your experiences and views are reality within the dream. The dream becomes unreal when waking takes place. Similarly the waking becomes unreal when you become aware the fact that, the self is not an individual. Thus whatever individual experiences experienced within the waking is as unreal as a dream.
Till one thinks the body as the body and the world as the world it is impossible to grasp non-dualistc or Advaitic truth, because his views and judgments are based on physical self with the physical existence(universe). The individuality is the reality within the waking experience but the waking experience itself is falsehood. Thus holding the view as an individual within the false experience is erroneous on the ultimate point of view. The waking is a parallel dream and dream is a parallel waking experience.
In waking the universe comes: in deep sleep the waking goes. In waking is one born; in waking one dies.
In waking one lives, in Waking one suffers. In Waking one earns, in waking one enjoys. In waking is one truthful or lies like a liar. In Waking one reflects on Virtue and Sin. In waking do one lands in Heaven and Hell. In Waking is one happy, in Waking in sorrow. In waking does one lose the distinctions of caste and creed. In waking is one wise; in Waking is one unwise.
In Waking one has an urge to know the truth. In Waking one is in the illusion; in Waking is one shadowed by Doubts and confusion, in waking one thinks of reincarnation and rebirth. In waking one thinks that he is born in this world and the world existed prior to him. In waking one is in ignorance of the true self, which is consciousness. If one spots out the true self within the three states, one realizes the way to freedom.
One is in action in Waking. In waking, one is bound by form, time and space. The waking experience is present in the form of mind. Mind appears and disappears as the waking or the dream. If there is no mind then there is no waking or dream. The waking or the dream is born out of ignorance of the true self. Getting rid of the ignorance through wisdom is the way to the release. In waking or dream, one follows the Writ of habit. waking or dream is a chronic malady; but within it also is its remedy.
The true Self is not perceptible to the senses. It is perceived by Reason. It is not perceptible as a thing with form and attributes. To those whose attention is fixed on the body and the world, it is very difficult to attain Self-knowledge. It is also very difficult for them to see the consciousness as self. Attention towards the universe (mind) should be lessened by realizing the self is not the body. The attention has to be focused on the formless substance and the witness of the universe (mind) should be increased. So long as the attention is directed towards the universe, the experience of birth, life and death will prevail as reality. But when the attention is directed towards the formless substance and the witness of the The mind, the ignorance vanishes and the sense of reality of the duality will disappear. Then there is unity in diversity.