A Nightmare On Elm Street 3: Dream Warriors/猛鬼街3

It looks like that this episode is more like a "Rise of Freddy Krueger the evil", which is about his origin. Freddy himself is the result of a raping tragedy, however, later he becomes tragedies of others.

The real horror lies in two points: how to convince others to believe in you, this is about communication; and true fear comes from one's inner heart, this is about psychology. Cut-down communication and fear from inside make a good horror movie.

I think this episode is better than the first one, as it combines dream, psychology, fear and hope better. The visual effect may seem average today, but must be impressing at the era for the movie.