Fluid collected in the knee, an effusion, will cause the symptoms you describe. This usually responds to PT, Ice and NSAID's. If it persists, or continues to recollect, then you should be re-evaluated to determine the cause of the fluid build up and possibly to drain your knee.
Thank you very much for the advice, im continueing my pt exercises and although the pain persists, the bulging is gradually subsiding. Thank you again :)