I tried this technique a few days ago, and it almost worked. I fell asleep, then I pinched my nose and could still breath, and I knew this meant that I was dreaming… but somehow I still didn’t become lucid. My guess is that I was so tired that I thought my attempt to lucid dream was just another part of the ND that I was already in. 
Boy, am I stupid. And I haven’t got that technique to work anywhere near as well again.