Ammonia is introduced by fish, dead raw shrimp( like your using now), liverock, livesand or even adding a few drops of ammoina from a bottle, or even what they call cylcle in a bottle. With the ammonia present the first stage bacteria start to form, this bacteria will start to break down the ammonia into nitrites, this takes about a week or so. Ammonia is the most lethal. At about 0.5ppm any corals will close up and eventually die, at 0.5 to 1.0 the fish will exibit irritation and the ammonia will impair the fishes bloods ability to carry oxygen.
As the nitrites build up the second stage bacteria will start to form in order to breakdown the nitrites into nitrates. This stage takes about three weeks or so. The ammonia drops to 0 as the nitrites are in full swing. Nitrites are the 2nd most lethal.
As the nitrites breakdown into nitrates depending on your system and set up you will be left with the nitrates and must find a way to lower them.
A lot of corals can actually use nitrates and can thrive on say 0.5 ppm or less. Nitrates at 30 ppm will cause fish to slow thier growth proccess, impair the immune system, and have reduced energy.
By now the nitrates are growing and the ammonia should be at 0, and the nitrites will eventually be 0.
To lower the nitrates, most aquariums will use a DSB= Deep Sand Bed to proccess the nitrates into a harmless gas that will rise up and escape the water colum. Water changes will also lower nitrates. There are also nitrate sponges, but with the price of the nitrate sponges the benifits of a water change are a much better way to go in my opinion. Nitrates are the least toxic in the cycle.
By the end of the cycle the ammonia=0, nitrites=0, nitrates=low as in less than say 10 ppm. When you believe the cycle has ended it is time in my opinion to do a 30-40 percent water change.
More than you asked for but hey, why not?
Thomas