DREAMS
There are two types of sleep called Rapid Eye Movement (REM) and non-rapid eye movement (NREM).

Rapid Eye Movement sleep occurs for 20-25% or 90 to 120 minutes of sleep time. REM also can happen as much as 5 times during the night.  Dreams are remembered the most during REM sleep because of all the time during REM.
REM Sleep Graph:
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Non-rapid eye movement is where the deepest sleep occurs and has three stages.
During:
Stage 1- Happens during the beginning of sleep and slow eye movement takes place in stage 1. Hypnic Jerks occur very often which are jolts to the body that awake you suddenly. 
Stage 2- Is not very exciting, dreaming rarely occurs, and people are easily awakened because it is a very light sleep. 
Stage 3- Is the deepest sleep stage and most dreams happen here. Dreams mostly occur here because eye movement and delta waves increase tremendously.