Wireless Bicycle Speedometer

how do wireless Bicycle Speedometers work?
how does the speedometer sense wheel rpms or distance traveled, is there a sensor on the wheel that communicates with the speedometer on the handlebars or what
Both the wireless and wired computers work the same way. There is a magnet placed on the front spoke that trips a reed switch (mounted on the fork) as it passes and tells the computer that the wheel has made one revolution.
The wired version uses wires of course and the wireless transmitter on the fork sends a radio signal to the computer. The wired version is more reliable and only needs the battery for the computer. The wireless version needs a battery for the transmitter on the fork and the computer. The wireless can pick up stray radio signals that make it inaccurate at times. Something like a false alarm on a radar detector.
Here is how a reed switch works, they are very inexpensive to make.
http://www.reed-sensor.com/Notes/General_Reed_Switch_Theory.htm
You have to tell the computer how far the bike moves every time the wheel makes one turn to get an accurate speed and distance reading.
Cateye CC-RD300W Strada Wireless Bicycle Computer
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