i agree you have to look above and below the knee. the knee is usually the victim of dodgy stuff elsewhere, unless trauma is involved.
think of it like this; every time you bend and straighten your knee your itb flicks over the lateral tubicle. this is whether you are walking, up and down stairs - whatever. if you don't have control of your hip or ankle then this is still the cause of the your problem.
rest is all well and good, but the establishing the cause; and not just treating the symptom is called for.
cheers
sixphysio