Between 2019-2021, the present ATLAS Small Wheel will be replaced with the New Small Wheel (NSW) to prepare for the high-luminosity phase of the Large Hadron Collider. One half of the NSW upgrade is based on the gaseous small-strip Thin Gap Chamber (sTGC) multiwire proportional chamber (MWPC) technology. The principle of signal formation is based on the induction of charge on detector elements due to the motion of ionization clusters within the MWPC. A method to determine this induced charge signal using Ramo's theorem will be described. An explanation of the physics inherent in a MWPC will also be summarized. An overview of the sTGC will be introduced, with a description of its simulation. The effects of detector components on signal formation will be presented, followed by how they are accounted for in the simulations. As a proof of concept, the simulation results will be compared to test beam data.