Interesting question. It might work. It's not how I trade though. I prefer to go long when a stock or sector is oversold while sentiment is extremely negative and market breadth is improving despite the stock or sector hitting new lows.
Going short is simply based on the opposite situation, overbought, overly bullish sentiment while market breadth and other indicators are showing distribution and weakness despite new highs being hit.
I would not recommend shorting too many shares at any time. I can afford to wait nearly forever for a long position to work out in my favor. A short position simply can run too far the wrong way and cause a margin call a lot easier than a losing long position.
Lots of people play the continuation of trends. I am sure that many of them do well. It's just not my cup of tea.
I would like to post a bunch of sector charts here again when I get time. When sectors get overbought with an RSI (14) nearing 70 they usually pull back. The reverse is true too when a sector is oversold with an RSI (14) nearing 30 they generally rally.
Right now we are in a mature bull run. The trend is still up but it's being carried by fewer and fewer stocks. We are headed for a market top. That usually happens with new highs in the market and loads of volume.
Market Data 
Markets 
AI
