The dream is describing a situation in which you are dreaming but have the impression that you are seeing things with full awareness (as when awake) , one in which you feel powerless to make a move (the paralysis). But then you realize that you are really just dreaming, that is, seeing a situation with too much emotion and fantasy and you are just 'dreaming' that you are unable to make a move.
The human figure represents an idea you have, one that may seem to make sense (as in "itfigures") Standing by the closet can suggest the idea associates with"the skeleton in the closet", that is, to some frightening idea which should have been laid to rest a long time ago. As the figure seen is pale, death like and referred to as a demon, it is possible that the figure represents the idea of 'a demon'.
A demon can reflect an idea through which you torment, persecute or harass yourself. When you close your eyes, stop seeing and believing this ides you are able to make a move. As the figure is seen on both sides of the bed, the idea, of a demon, has to be seen for the right and especially the wrong of it. The idea of a demon is not working in your favour (tries to bite & kill you) and you need to resist it and not let the idea 'stand' or remain as a valid idea. (knock it down) Forcing sleeping pills on the figure can imply force the idea of a demon - a tormenting idea - to take a permanent rest.
[Note that the battle against a tormenting idea may need to be repeated a few times before your mind accepts that you are serious about not letting an idea harass you.(demon got up and attacked again) Scripture tells us that the battle is not fought on earth (physically) but in heaven (in the mind).]
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