This paper investigates the Bluetooth direction finding technique and combines it with the improved signal subtraction subspace (ISSS) algorithm for precise indoor positioning. First, the phase offset caused by the electronic switch is solved by the phase compensation algorithm. Then, the ISSS algorithm is proposed by combining the spatial smoothing techniques algorithm, the density-based spatial clustering of applications with noise (DBSCON) techniques and the signal subtraction subspace (SSS), which reduces the interference of coherent signals and caused by moving between people in the room. Finally, different placement methods for receivers in different spatial shapes are proposed. In this paper, the positioning accuracy of the algorithm is tested using Silicon Labs' Bluetooth device. The results show that the average positioning errors are 0.92 m for single receivers and 0.30 m for dual receivers in a room size of 3 m * 3 m. Therefore, the method has a promising application in achieving accurate indoor positioning.
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