It's a belief that certain children were blessed with special abilities and attributes [like they were born ascended to a higher spiritual plane] it's been a long time since I heard someone talk about them [but they were crazy popular a decade ago. Anyone who was neurodivergent in some way was considered an indigo child] Personally, I believe something like indigo children exists, but not to the degree of people claiming to be divinely blessed.
To expand on Neko's information, The term was coined originally to refer to children who exhibit the characteristics of an 'old soul'. The color Indigo is associated with healing, upliftment, ascension, and transcendence.
When an adult is wise beyond expectation for their years, experienced in things he/she has only just discovered, and generally predisposed towards spiritual awareness and connection is thought to have these traits because they have likely lived many lives before. Hence the 'old soul' monicor.
But if the soul is -so- experienced that they are able to reach these sorts of connections and attitudes while still a child, then they 'must be' even older souls. So experienced that spiritual attention is ingrained into their nature, and they are elevated enough to be connected with their higher Self and able to tap in to that experienced set of lifetimes of experiences with ease. Someonene so attuned naturally would be assumed to be close to transitioning from the need or urge to reincarnate, and that they must be readying to move on to the next proverbial level. Just as the color indigo is the beginning of the transitional purple wavelengths that lead from visible light to the bands above human-visible color.
Like with so many other things, the idea got watered down to parents wanting to see their 'different', 'special', and 'unique' children as something special and important. Effectively throwing their kids onto a bandwagon term to try and 'make' them special instead of seeing them as already being that way without need of some special term to make it valid.
Truly indigo children, like so many other meaningful things (Actual Gurus, Genuine spiritual leaders/prophets, etc) they are actually extremely rare encounters.
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