I need some documentation on how to create a view type of Entity reference display?

I have an entity which contains a field collection of entity references and can edit the entity references with the Entity selection mode is Simple (with optional filter by bundle), but only Entity Field Name x shows in the list.
I also created a view which displays information from the referenced entity, but when I switch the Entity selection mode to Views I get the message:
No eligible views were found. Create a view with an Entity Reference display, or add such a display to an existing view.

After that I created a number of views of the Entity Reference display type, which display the same information but error message still comes up.

Are there some guides to creating Entity Reference display views?