When there is no GPS signal (such as indoors) and the location is Wi-Fi based instead, it will show Wi-Fi on the status bar. This does not mean that it is connected to Wi-Fi, only that the location is Wi-Fi based.
*Note that you must have our GPS 2 device. If you do not, please go to our AngelSense Store from the app to purchase it. The GPS 1 device is not Wi-Fi compatible. See: Device Comparison