The Forest is in a way split in two sections. The section closer to Stonecliffe is inhabited by Bandits which are Level 2. Down the hill, further into the forest, the Bandit Captain can be found by his tent at Level 4.
From the tent, take a left toward the pathway. You will see that the forest continues on a bit farther. In the section of the forest that is on that side of the path, you will find Level 4 Wisps.
Recommended levels 1-5.
To the left of Lieutenant Maxwell's tent you will see the graveyard. You will revive here if you happen to die in the area.