Displacement and Tesselation not working properly

Hello everyone,

I tried to make a simple mesh to test tessalation in Unreal Engine 4 but I wasn’t happy with the results… I think I’m doing something wrong…

Here is the Displacement map I have created in Photoshop:

And here is the material setup:

And the result:

What am I doing wrong? I tried both PN Triangles and Flat Tessalation I still don’t get the desired effect… I checked on the docs how to do tessalation and there it works just fine but not working for me… Can you guys help me out find why it’s not working properly?