What are signs that a nerve is regenerating? If I touch one place I can feel it in another area. Why does that happen?

A progressive event. Nerve recovery depends on whether just myelin coverings, which improves at about 4 weeks, but if central axon, will grow back at about 0.1 mm daily, like a fingernail. Tingling with pins and needles might be a good sign, and perhaps, spots of improved sensation might indicate success. The touch response above is perhaps support of spotty recovery, and not negative.