What I’ve experienced is that dreams are made in my opinion of: Real things that belong to the Astral dimension, symbols and archetypes that belong to our DNA as explained by Carl Jung, and also of different levels of “Mental Forms”.
By Mental Forms what do I mean?, the other day I did an interesting experiment, I guess the idea came to me from movies like Inception or Existenz(old movie with Jude law), I suddenly became lucid in a dream, and I realized I was on the floor of a room acting crazy when I suddenly told myself “im in a dream, what the hell was i doing?”, then I looked at the people surrounding me, they were women chatting, in that momment I aproached them and said to one of them “what is your name?” the woman looked at me and couldn’t answer, she was paralized, then I told her “what do you do or what’s your purpose”, again she did or said nothing. Then in that momment I realized why they couldn’t answer:
I had seen those women chatting on the street at day time, my eye must have seen them and they were instantly copied in my subconcious memory, and so they were repeating the same actions in my dream, thats called a “mental form”.
They couldn’t answer because that’s all I saw from them during the day, only two women chatting, therefore they were programmed in my subconcousness only to do that, it was like a short programming (there’s a scene in the movie existenz similar to this).
On the other hand you can have very comlex “programs” or mental forms in your dreams, when you see your parents for example, they can be your real parents in the astral dream but most likely they would be complex mental forms of the image you have from them, therefore they would be able to speak and do all kinds of stuff like they were real since they are your parents then you know them extremely well, well enough for them to be basically autonomous and , real and complex in your dreams.
Theres a problem with mental forms though, they make your life difficult, our “egos” or “defects” are also to complex, they have been fed all of our lives, therefore stuff such as lets day “envy” is basically a living entity in your subconcious mind, complex and all, trying to influence over your conciouss side, limiting your life and making you suffer.
these egos or complex mental forms can also influence over your physical body, for example, if you have an ego of being unpatient, then you will start shaking your legs like a neverous tic.
Im pretty sure “demonic possesions” are not raelly demons, but these complex mental forms taking a strong manifestation in the physical, it depends on how strong they are and how long they have been fed.
Basically they are autonomous living entities fed by mental energy, curious isnt it?