Types of dreams

Daydream
Daydreaming is classified as a level of consciousness between sleep and wakefulness. Studies show that you have the tendency to daydream an average of 70-120 minutes a day. It occurs during waking hours when you let your imagination carry you away. As your mind begins to wander and your level of awareness decreases, you lose yourself in your imagined scenario and fantasy.

False Awakening Dreams
Have you ever thought you have waken up and gone about your daily morning routine: getting up, brushing your teeth, eating breakfast and going to work, only to wake up "again" and realize that what just happened is just a dream. That sensation is referred to as a false awakening.

Lucid Dream
Lucid dreams give you the ability to control your own dreams and steer them toward the direction you want. In the lucid state, you are more willing to confront threats and as a result, become more self confident. When you achieve lucidity, you can use it as a tool to improve your sports game, to rehearse for a speech, to fulfill your fantasies, or to solve a problem in your waking life. In fact, some athletes utilize their lucid dreams to practice their tennis serve, golf stroke or bat swing. Even in your day to day life, you can use lucid dreams to ask the boss for a raise, prepare for a first date, overcome phobias, get over writer's block, etc. Lucid dreams can help you visualize and rehearse an event in your mind before it actually occurs. It helps to overcome fears and anxieties. The application of lucid dreams is limited only to your imagination.
Because brain activity during the dream state is the same as during a real life event, what you "learn" or "practice" in your lucid dream state is similar to the training and preparation you do in the waking world. Your neuronal patterns are already being conditioned.
At least half of all adults have had one lucid dream in their lifetime. Many have reported having lucid dreams without even trying. Often flying is associated with lucid dreams. With practice, lucid dreaming can be learned and achieved at your will.

How to lucid dream

Dreams:
How To Lucid Dream
http://www.videojug.com/film/how-to-lucid-dream

Nightmare
A nightmare is a disturbing dream that causes the dreamer to wake up feeling anxious and frightened. Nightmares may be a response to real life trauma and situations. These type of nightmares fall under a special category called Post-traumatic stress nightmare (PSN). Nightmares may also occur because we have ignored or refused to accept a particular life situation.

Research shows that most people who have regular nightmares have had a family history of psychiatric problems, bad drug experiences, people who have contemplated suicide, and/or rocky relationships. Nightmares are an indication of a fear that needs to be acknowledged and confronted. It is a way for our subconscious to make up take notice. "Pay attention!"

Recurring Dreams
Most dreams contain messages that serve to teach you something about yourself. However, soon after you wake up to go about your daily routine, you tend to quickly forget what you dream about. The message in recurring dreams may be so important and/or powerful that it refuses to go away. The frequent repetition of such dreams forces you to pay attention and confront the dream. It is desperately trying to tell you something. Such dreams are often nightmarish or frightening in their content, which also helps you to take notice and pay attention to them.
Recurring dreams are quite common and are often triggered by a certain life situation or a problem that keeps coming back again and again. These dreams may recur daily, once a week, or once a month. Whatever the frequency, there is little variation in the dream content itself. Such dreams may be highlighting a personal weakness, fear, or your inability to cope with something in your life - past or present.
The repetitive patterns in your dream reveal some of the most valuable information about yourself. It may point to a conflict, situation or matter in your waking life that remains unresolved or unsettled. Some urgent underlying message in your unconscious is demanding to be understood.

Healing Dreams
Healing dreams serve as messages for the dreamer in regards to their health. The Ancient Greeks called these dreams "prodromic". Many dream experts believe that dreams can help in avoiding potential health problems and healing when you are ill or when you are grieving. Research shows that asthma and migraine sufferers have certain types of dreams before an attack. Your bodies are able to communicate to your mind through dreams. The dreams can "tell" you that something is not quite right with your bodies even before any physical symptoms show up. Dreams of this nature may be telling the dreamer that he or she needs to go to the dentist or doctor. If you can understand the language of dreams, your dreams will serve as an invaluable early warning system. They can help inform, advise and heal.

Prophetic Dreams
Prophetic dreams, also referred to as precognitive or psychic dreams, are dreams that seemingly foretell the future. One rational theory to explain this phenomenon is that your dreaming mind is able to piece together bits of information and observation that you may normally overlook or that you do not seriously consider. In other words, your unconscious mind knows what is coming before you consciously piece together the same information.

Epic Dreams
Epic dreams are so huge, so compelling, and so vivid that you cannot ignore them. The details of such dreams remain with you for years, as if your dreamt it last night. These dreams possess much beauty and contain many archetypal symbology.

Reference:
http://bahcecikdevekusu.com/dreamcenter/types.htm
http://www.dreammoods.com/dreaminformation/dreamtypes