When we want to describe an action happening at a particular time in the past, we use the past continuous tense (= прошло трајно време):
We were watching TV at six o'clock.
The past continuous form is also used for two longer actions happening at the same time:
Mum was washing the dishes while dad was reading the newspapers.
Finally, when we want to say that an action, usually a longer one, was interrupted by a new, shorter action, we use the past continuous form for the longer action and the past simple form for the shorter one:
I was having a bath when the phone rang.