The galvanometer nulls (needle at 0) when R1/R2 = R3/Rx, i.e. Rx = R3·R2/R1. Defaults R1=R2=R3=1000 Ω, Rx=1010 Ω give an off-balance state (≈1% strain-gauge change).
Dots flowing in each branch = current (speed ∝ branch current). The galvanometer needle deflects when off-balance and returns to 0 at the null Rx = R3·R2/R1.
The two voltage dividers in a Wheatstone bridge split the excitation Vin in two different ratios. The output Vout appears as the difference between them.
Open-circuit output voltage (high-impedance load):
$$V_\text{out} = V_\text{in}\left(\frac{R_2}{R_1+R_2} - \frac{R_4}{R_3+R_4}\right) = V_\text{in}\,\frac{R_2 R_3 - R_1 R_4}{(R_1+R_2)(R_3+R_4)}$$Balance condition (gives Vout = 0):
$$R_1 R_4 = R_2 R_3 \quad\Longleftrightarrow\quad R_4 = \frac{R_2 R_3}{R_1}$$Strain-gauge relation (GF: gauge factor, epsilon: strain):
$$\frac{\Delta R}{R} = G_F\,\varepsilon, \quad \frac{V_\text{out}}{V_\text{in}} \approx \frac{G_F}{4}\,\varepsilon \;(\text{single-gauge})$$Near balance, Vout responds linearly to resistance change, allowing tiny displacement, temperature or strain to be measured with high precision. This is why the bridge has remained in use for over a century.