An indicator holder for holding and positioning an indicator, such as a dovetail dial test indicator. The indicator holder includes a mounting assembly for attaching the holder to a machining apparatus. The mounting assembly includes one or more connecting members and an eccentric offset member. The central axis of the offset member is offset a distance from the central axis of the connecting member, with the two axes being parallel. The indicator holder includes an upper arm that receives the offset member of the mounting assembly such that the upper arm can rotate about its axis to enable alignment or zeroing of an indicator mounted within the holder. The indicator holder has a slide plate pivotally connected to the upper arm and a lower arm pivotally attached to the slide plate, with the lower arm including a guide way receiving and retaining the mounting element of the indicator.