Really, a nightmare just really has to evoke some sort of, we call it, dysphoric emotion or something uncomfortable. You could be sad, you could be unhappy; you could be scared, anxious. But traditionally, the definition is you have to awaken from this nightmare.
So you have it, you awaken from it and you can recall, in detail, what just happened, that's a nightmare. So it's very different from a dream where you generally don't wake up from it and you don't have this dysphoric emotion.
So when you're in REM sleep, your brain is very active, our body is quiet, but your brain is really processing a lot of things, a lot of emotions; we dream the most in REM sleep. And then you go back down in the deep stages, and so on and so forth.
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