I think I made the example more complicated than it really is. What you described in the quote is exactly what I would like to see.

I'll try to give another example with an attached chart and hope it's easier to understand.

In this example I started sleep at just before 11pm. I want to set a delay where it can only start 3hrs into my sleep (so start just before 2am). It will see that period of light sleep (2.35am-2.55am) and recognise it as the transition between sleep cycles. 2.55am would be the start of a new sleep cycle. It would then count 60minutes and play the lucid dream music.

Hope that's clearer.