I put a piece of turned round stock into my er16 collet. Align by eye then Put a dial indicator on my chuck/5C collet, rotate the chuck/5C with needle on stock diameter and adjust X until I can get it under .002"
I've also turned two .750 dia pcs with a taper to a point. Put one in the chuck and tool holder to help when eyeballing the tips before indicating. Hope that helps.
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