I read that the period of rapid eye movement is when dreams happen, and if someone wakes up during that period or directly after it, they will remember the dream. Which is why you remember nightmares more than good dreams, because nightmares quite often wake you up!
Also, here's something interesting: it said that when you miss out on some time of REM on one night,
it will be made up on later nights. So maybe, for some reason, it's necessary?
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You'll be out doing something one day and something will happen and you think...I could swear i had a dream about this once.
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Yes, it happens to me quite often. I won't even remember the dream, I'll just remember that this place, or this thing, was in my dream.