'In a nutshell the story of “Nightmare on Elm Street 2: Freddy’s Revenge” is as follows:
"A male teenager named Jesse who’s a high school wrestler moves into the house where a lot of the original “Nightmare On Elm Street” took place with his family and he gets Nancy’s old room. In her closet, (and his) he finds her diary containing her secrets about the nightmares she had. He soon has the revelation he’s having the same dreams as Nancy and runs to his parents screaming that he’s ” becoming NANCY” and his parents don’t believe him and then get mad at him.
"This is bizarrely as subtle as this movie gets.
"From there Jesse’s S&M gym teacher stares at him working out only to later run into him in a gay leather bar (Don’t ask me how or why there is a leather bar in Springdale) ) and they end up in back in the school gym where the teacher ends up getting snapped with wet towels and attacked by his own (basket) balls. ...." [Back2Stonewall]