What I understand capital losses can be carried forward....

What I understand capital losses can be carried forward. However, when a capital gain is triggered than it is reduced by all the capital losses accrued. Say your capital loss is 5,000 and you capital gain is 3,000 than you have no capital gains and you are carrying forward of $2000 capital loss for years n years, or until the tax year you have another capital gains event. I am not an accountant but I believe this is what happens