If I had an indicator with a hook I would of taken 3 nice fish today at the Little Lehigh.
Tim B (an irregular regular of the board) claims he carries a CDC fly that is spun up to look like an indicator for days like that.
To answer the original question, I like to use a variety of indicators. I think the water should dictate the type of indicator.
If I am fishing pocket water, I'll give high stick nymphing a try. If I have trouble with this, I may switch to a nymphing leader. I tie nymphing leaders to include the Cortland indicators. These are bits of bright fly line that I slip into sections of the leader. I put two bits of this line on, and if the lower one ticks upstream, I set the hook. Often enough, it's a trout. That's not to say it always is or even often is. But hey, if you set the hook 50 times and the 51rst is a trout, that's better than gettin' skunked!
🙂
On flat water, I like to use a dry fly or just the leader. If the leader or the fly goes underwater, that might be a fish too.
Sometimes also, I will use a bright colored nymph, like a green weenie or an egg. To the bend of this fly, I'll tie a pheasant tail or some other more realistic nymph. I can watch the attractor fly and if I see movement around the fly, I'll set the hook. If I get snaggs, I'll dump this rig. But it works most of the time.
When I use an indicator, I like the putty type of indicator from Loon. The only issue with this stuff is that it gets stiff and falls off in the cold. So I wouldn't use it in the winter.