If you have a magnifying glass handy, hold it over an advertisement or photograph in any magazine. You will see thousands of colored dots or pixels, which make up the "screen" of the photograph. At close range, these dots are quite noticeable, but at normal viewing distances, you don't see the dots -- just the image they form.
LED sign pitch is exactly the same. Viewed up close, they're a jumble of colored dots. As you back away from the display, the dots become less noticeable. Eventually, your eyes stop paying attention to the "dots" and focus on the images being formed.
Pixel pitch describes the density of the pixels (LED clusters) on an LED display which in turn defines the LED sign resolution. Pitch is a measurement of the distance in millimeters from the center of a pixel to the center of the adjacent pixel. The smaller/tighter the pitch of a display, the higher the resolution and closer the viewing distance.
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