Ryan Walker used to not fish it with an indicator. He'd straight line it close to the bank, spot fishing. He'd set it on the bottom where he could see it and when a trout swam by, he'd pick it up off the bottom. Or if there was alittle current, he'd again drift it on the bottom and when it came close to a fish, he'd lift the line and the fly.
If using an indicator, fish it as deep as the water I'd say. May be closer to the surface if that's where the trout are holding.