There is no definitive answer to that question, which is still being debated by neuro-scientists and psychologists, however a reasonable guess is that dreams are a byproduct of the effort of the sleeping mind to make sense of the events of the preceding day, and get its thoughts in order; you could call it the musings of the subconscious.
The answer to your question is very complicated. The psychologist Sigmund Freud divides the mind into a series of parts. Excitement, meaning any kind of thought, memory, or current sense, travels through the parts. The first part, in which excitement usually starts, is perception: your eyes (and ears, etc.). You see something happen. Next, the excitement travels through memory groups, which teel your mind the relationships between the things that you are seeing (you see a woman; her feet touch the street; your memory groups tell you that she is standing on the street). Next, there is the unconscious. The unconscious has a wish, that is usually very self-centered. The wish wants to result in a movement. The excitement, which during a dream is a wish, does not start in the perception. After all, your eyes are closed, so you won't see anything that the perception will pick up. It starts in the unconscious. In order to result in this movement, it must pass throught the next part of the mind, called the preconscious. But a censor, or block, is between the unconscious and preconscious. The censor will not let the wish result in a movement. The wish gives in. Meanwhile, the preconscious distorts the dream. It still contains the wish, but it makes no sense and is strange. The excitement in the mind normally travels from the perception to the memory groups to the unconscious to the preconscious to the conscious and finally to the movement. However, the dream wish, the excitement, is blocked by the censor, so it turns around. It goes back through the unconscious to the memory groups. As it passes through the memory groups, it loses all of its logic. The dream seems to contradict itself. Finally, the dream wish reaches the perception again. And so, you see the dream.
Dreams are produced by the subconscious mind during specific stages of the sleep cycle. Many dreams are just "brain lint" - they are rehashes of the day before, as the subconscious mind processes experiences and impressions. Other dreams can be "practice" or "rehearsal" of different ways of solving problems. Yet other dreams can involve symbols in which one image represents something else in the same way that the Bald Eagle represents the United States. Most dreams involve purely mental exercises, and it is not important to remember them all.
Some dreams, though, do contain messages that the subconscious mind sends to the conscious, waking mind. Repetitive dreams that occur over and over usually contain this sort of message. Once the dreamer figures out what the dream represents, it stops occurring.
Our brains are unbelievably complex electrically powered processors. They never shut down completely, except in extreme conditions of trauma, or at the time of death. But they do quiet down a lot, and sometimes they are so quiet that no neural activity reaches the level of dream state. Our sleep cycles are such that for a few periods a night, the brain is engaging in a lot of activity, but parts of our nervous system that process sensory input, and that give us voluntary control of movement, are at rest. During these times, various kinds of brain activity may register as dreams. Dreams aren't 100% different from waking consciousness, but during waking consciousness we can control a great deal of the input our brains receive, and we can be fully aware of the difference between the outer sensory world and the inner world of thoughts and mental images. While we sleep, sensory input and many other things are temporarily shut down.
Some of the mental activity taking place while we sleep is a sort of housekeeping, as the subconscious mind sorts through the thoughts, emotions and experiences of each day. Other dreams appear to use symbols and metaphors to illustrate deeply held emotions. Nightmares are often this type of dream, with the monsters taking the place of anger or jealousy. Yet other dreams seem to provide opportunities to rehearse or practice situations that might be encountered in real life. For more information than can be included here, see link attached below.
Dreams are involuntary, imaginary images that drift through your mind as you sleep. They are produced by the subconscious mind that sorts through the thoughts, emotions and memory of the past day(s) while your conscious mind rests in sleep. Dreams have a number of different functions, including the release of tension and stress. See the link below for further information.
REM (Random Eye Movement).
that reveries and dreams are related to what you think
The dreams that we remember tend to only occur during REM sleep. However, new research is showing us that dreams can actually happen in NREM sleep. Research is still being done to determine exactly what kind of dreams when have in the different stages of sleep.
There is no special cause of early morning dreams. But the dreams that occur just before awakening are remembered more easily and often than dreams from other periods of sleep.
Dreams are produced by the subconscious mind during sleep. Dreams reflect the dreamer's emotions, experiences, thoughts and memories. They occur naturally and involuntarily; dreams cannot be "gotten" by the conscious (waking) mind.
its called "stimulouis" when dreams occur to things that are going to occur in the future.
In your dreams!
Very recent research suggests that dreams that occur during REM sleep tend to be more agitated and troubled than dreams that occur during non-REM sleep. More research is being done to better understand the difference.
No. "Precognitive" means fore-knowing, or knowing something ahead of time. Precognitive dreams supposedly predict the future. Hallucinations are different in that dreams occur during one's sleep, while hallucinations occur when one is awake, often when one is feverish or otherwise impaired.
Dreams occur during the REM (rapid eye movement) stage of sleep, which is associated with increased brain activity in the limbic system, amygdala, and hippocampus. These areas are involved in emotions, memory, and processing information, which are all elements present in dreams.
Dreams are entirely involuntary and do not always correspond to reality. Dreams that occur during your sleep might express lingering emotional ties to your ex, or they might be triggered by subtle daily events that evoke memories of your ex. On the other hand, your "dreams come true" may be your hopes, plans and aspirations. Dreams in this sense are functions of the conscious, waking mind, while dreams that occur in sleep are entirely different, and are functions of your unconscious mind.
The superstition probably is related to the fact that dreams that occur just before awakening (generally in the early morning) are more easily remembered than other dreams.