Excellent point from Michael about mounting in the tool post so the cross slide feed can be used for fine adjustment. Although I have the mount set for my Verdicts I generally don't use it. A magnetic base with effective fine adjustment works better for me. Especially as my main lathe has nice flat cross slide for the base to sit on.
These days it probably doesn't make sense to fabricate your own mounting system. Time spent is probably more valuable than the relatively modest cost of buying things. Bit different 45 odd years ago when I got started.
I found some 10 or 12 year old pictures of my small Verdict mounted in various ways dating back to when I had a SouthBend Heavy 10, not so good for mounting a magnetic base on the cross slide, which may be inspirational.
First the (then) selection of mounts. There are more now! The inexpensive one on the left with its "circle with a chunk out" screw adjuster is very effective with lightweight indicators like the small Verdict featured in the pictures. Anything over 1 1/2" or 40 mm dial is likely to be too heavy. The big Eclipse magnetic base on the right is very, very stable mostly due to its large diameter column. The old Eclipse bases had a simple spring loaded pivot with perhaps ± 10° of travel and relatively large diameter carrier arms which keep the indicator very steady.

My most common set up. Mag base on cross slide, base adjuster used to set vertical position, cross slide to set transverse position and saddle to set longitudinal. Small Eclipse base is decently rigid, solid bar is generally stiffer than the other styles. Probably a quickly posed picture, normally the dial would be facing me.

Lateral thinking when I had several things to set up. Adjustable arm of the cheap mount strapped to the supporting bar for the chuck guard. Angles of dangles are not ideal but worked fine for final adjustment of several nearly, but not quite, the same parts.

This little stem with dovetail slide for side to side movement is really intended for use on the mill but posed up here in the tailstock. Stem on the end of the indicator is held in a stiffly pivoting carrier. Push'n prod adjustment is Ok with one thou sensitivity indicator. High sensitivity, tenths thou, one needs a very steady hand. I can but would seriously rather not.

Simple jointed rod carrier used on the Bridgeport to set vices parallel to table and similar basic jobs.

The indicator collection, then, more now. The pressed tin device at the left rear is a Unique. Sold for a few shillings when I was in short pants with maybe 20 thou travel one way its unreasonably accurate, especially considering the innards are basically a needle on a pivot. Under half a thou error with care. I made the joint rods on brass base thing for it when on first or second year wages.

Edited By Clive Foster on 24/12/2019 20:18:46
Edited By Clive Foster on 24/12/2019 20:20:19
Edited By Clive Foster on 24/12/2019 20:22:24