Pay special attention to areas where you have furrows, folds or deep wrinkles. If you want to use highlighting and shading do it after the foundation and before applying powder. Its not necessary unless you want to be photographed or appear good from a distance. Remember its only a visual effect and not truly changing your face. Highlighting is used to punch out those areas you want to appear raised, like the bag line below the eyes or creases on the forehead.
Yellow highlighter works very well.
Apply with an angle tipped brush only into the depressed area you want to raise. Tap in lightly with a clean wedge sponge and the again with your foundation sponge to blend. The area should be slightly lighter that the rest of your face. Shading is used to make an area appear recessed. Mostly we use shading to hide that male jaw.