Yes, you've got it.
The True Market Value price is Edmunds.com's determination of the average selling price for that vehicle.
In your example, the price to shoot for is $23,504. Since that's an average, you may do even better than that. Once the dealer agrees to that price, then you negotiate the value of your trade-in.
When it comes time to settle up, the price of the car will be $23,504 (plus taxes and doc fees) minus the down payment and minus the value of your trade. That should come out to around $18,104 (plus taxes and doc fees).
Don't forget to check for any incentives or dealer cash - customer rebates should already be deducted by Edmunds in calculating TMV but dealer cash isn't. I don't know if Honda has any incentives on the CR-V right now, but if there is any dealer cash or marketing support, knowing those numbers could help you negotiate a price better than TMV.