Maggiesathrum said under the skin not on the skin. It sounds like she has exactly what i have. Its a ball like lump that moves around under the skin and is extremely painful when pushed/touched hard. it almost feels like one of those pimples underneath the skin that feelslike a bruise, except,1. it can move around, and 2. i've never had one on my knee before.
Hi, welcome to the forum, there are many causes for bumps on the skin. The important possibility is Atopic dermatitis which is seen due to allergic background and Contact dermatitis due to direct skin exposure to a substance which can be a allergen or irritant. Other possibilities are fungal infection (Pityrosporum folliculitis) and impetigo.
Steroid creams with topical antibiotic against prescription may help. I suggest you to consult Dermatologist for detailed evaluation and appropriate treatment. Maintain hygiene and avoid touching with hands to prevent secondary infection. Take care and regards