The approach makes sense up to a certain point. If you believe the long-term prospects of the companies are still good, why not picking up some more shares at a lower price. However, what if you're trying to catch a falling knife?
I think the recent drop in equities you mention is due to...
Even though I'm more of a buy-and-hold investor, I can really enjoy to see stock markets go down. Since I'm still young, there's no sense in having markets at high P/Es. I'm a net buyer.
Since I can easily handle these drops without blinking, I would say I'm pretty disciplined :-).
Personally, I'm not yet convinced by the method you propose to time the market. As you mention yourself, you will be confronted with false signals in periods when no clear trends are present. So backtest the idea first!
Alternatively, you could opt for a strategy like value averaging. It's a...