Yep, that's right. Purl all 5 of the next sts together to decrease to 1 st, it helps if they're loose. Then in the following st after that, kpkpk into it to make 5 sts. Or you can k yo k yo k, it may be a little easier to do and looks pretty much the same.
It sounds like you're making a nupp, a feature of Estonian knitting meant to resemble a flower bud. Check around for videos by Nancy Bush, whose love for Estonian knitting has resulted in at least one book and many videos!
Or it's a version of the blackberry stitch; a nupp is usually doing the increases on one row and working them together on the next. When you alternate the decs and incs on the same row, it's a little different, sort of a bobble or something.