At the bottom of this post is the RattleBars wiring diagram for the Valk IS for lighting. It is what I'm referring to. Blue text refers to wires on the RattleBars image, red text refers to wiring on your image.
See where it says "
L Brake/Tail Light" and "
R Brake/Tail Light"? These are the wires you will be dealing with. The "
Green" one goes to ground. The "
Brown/white" one is for the tail light - you don't want to mess with it. The "
Green/red" one is the brake light signal, and it's what you want to use to connect to the "
RED WIRE INPUT" listed in your diagram. One of the "
RED/WHITE WIRE" gets connected to one of the "
Green/red" brake light wires on the bulb side, and the other to the other. Don't cut the "
Green" wire on the bike - just tap the "
BLACK WIRE GROUND" into it from the wig-wag.
Depending on the size of the wig-wag, you probably have enough room inside the housing of the trunk (between the inner and outer shells) to make all the connections and secure the wig-wag unit, that way you're not trying to run extra wire from under the seat or side cover, or trying to fish them up from underneath the trunk. This will also give you access to the wiring harness in the correct place.
The image is located on this page:
http://www.rattlebars.com/valkfaq/schematics/rpage03i.html