You appear to have the steps correct, so I'm guessing that you're attempting to use the ability after some units have moved. If a unit is on the space where the chest/altar can spawn, that space won't be highlighted and you won't be able to use the ability for that space. If all spaces are occupied by an active (not dead) unit, you'll get a message saying there is no target for the ability. You'll get the same message if you've used all your searches for a given battle.
Try entering a battle with enough rage to use the ability and immediately attempt to use it. Hexes that are green can spawn a chest, if red, an altar. If you can search only one chest, only one hex will be green, if two chests, then two hexes will be green, and so on. The hexes that will spawn are randomly determined each battle, but will always be unoccupied at the beginning of the battle.
I like to immediately bring up the ability at the beginning of combats to see where the chests can spawn - it helps later in the fight when I'm ready to use the ability, but the hex(es) don't highlight, so I have an idea of which units to move to allow it to work.
By the way, I've found certain graphics can obscure the highlighting - for example, Oil Mist. That may also be causing problems - hexes are highlighted, but you can't see them.
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