I have actually caught quite a few trout hanging a red hook like this below an indicator when the fish rise to take the indicator. I tie it to the indicator as close as I can and hang a chironomid below it anywhere from 12 inches to 7 feet.
When I tied flies, I tied some up for Aaron over at River Run Anglers. They were of the woven kind. I never fished it. I heard that they fished good. They were tied on a #12 red hook. The trouble is that I forgot how to tie them