Where was the aftermarket gauge installed?
I suspect that you observed the aftermarket gauge was moving up and down while the car's dashboard gauge never moved.
If installed on coolant hoses external to the engine, the aftermarket gauge will not show the right temperature. The temperature on such a gauge will fluctuate wildly every time the thermostat opens/closes.
Only in cases where the cooling capacity is overwhelmed (this almost never happen on a modern car.. unless you're driving stop and go in 110degree heat uphill while blasting the AC) will a factory temperature gauge move.
That small movement tells the driver that the cooling system is at capacity (thermostat likely open 100%) and the coolant is unable to cool the engine down to ideal operating temp. At this point, the driver can turn off the AC, or ease off the throttle to bring the temp back down.
An aftermarket gauge such as the one in this thread will swing from low to high every time the thermostat closes/open and will provide misleading information.
I think an OBDII scanner showing the ECT is the way to go for those who do not trust the red coolant light.