To set up conditional formatting for absolute values in Microsoft Excel, follow these steps:

1. Select the cell or range of cells that you want to apply the conditional formatting to.
2. Click on the "Conditional Formatting" button in the "Home" tab of the ribbon.
3. Choose "New Rule" from the drop-down menu.
4. In the "New Formatting Rule" dialog box, select "Use a formula to determine which cells to format".
5. In the "Format values where this formula is true" field, enter the formula:
   Formula:

   =ABS(F5)3 

   (assuming F5 is the cell you want to apply the formatting to).
6. Click on the "Format" button to choose the formatting options you want to apply, such as the background color.
7. Click "OK" to close the "Format Cells" dialog box.
8. Click "OK" again to close the "New Formatting Rule" dialog box.

Now, any cell in the selected range that has an absolute value greater than 3 will have the formatting applied to it. You can adjust the formula and formatting options as needed for your specific needs.