A bit harsh, if that is what you've been asked to do by ATC, you can hardly decide to start orbiting deadside because you hear a take off clearance given, you may easily interfere with something else.
Actually, unless we're talking class B airspace here, that's *exactly* what you're supposed to do. In anything class C and below, VFR/VFR separation is your responsibility, not that of ATC. If that separation requires an orbit deadside, so be it.
I was given a crosswind join for 20 a few weeks back when I was still between Littlehampton and Worthing and told to report downwind. I wasn't comfortable with that, so reported Worthing descending to circuit height for crosswind join, then as I was approaching crosswind an aircraft was given take off clearance on 20 so I reported my crosswind position. Better that everyone is aware of position I think.
Reporting your position is good, but just reporting your position does not automagically prevent a mid-air collision. At some point in time somebody actually has to take avoiding action. And since you are joining the circuit, it's up to you to give way to any traffic that's already in the circuit. Regardless of the way you join the circuit.