Jim.
Here is a link on the subject. Just scroll down to gib tightening on the page. He explains it better than I.
http://www.thewarfields.com/cnccookbook/MTCNCDictGangtoKnee.htmHe pretty much has covered the basics for you in the article. The way with the test indicator is the normal way to get a view but remember its only giving a little inside information on what’s going on inside the table.
Setting gib screws and applying pressure is really more of a feel and understanding of your machine, playing around and taking notes while playing with settings will be the only way of finding out what the machine likes or not. Assuming your slides and keys are not wrecked.
This is one subject that’s hard for a lot of people. I will share this with you, while setting gib keys I work from center out and run the saddle / table and feel with my hand by actuating it, I apply a push pull method like you and try to eliminate as much backlash or unwanted travel. I own a Logan lathe and I get a nice tight yet smooth action by tweaking the gib-set screws on the other hand my Atlas lathe will not cooperated and either has a little slack or will bind up, with the atlas I just know it and build it in my machining maneuvers.
Hope this helps all the best. Anthony.