The proliferation of communication and mobile computing devices and local-area wireless networks has cultivated a growing interest in location-aware systems and services. An essential problem in location-aware computing is the determination of physical locations. RFID technologies are gaining much attention, as they are attractive solutions to indoor localization in many healthcare applications. In this paper, we propose a new indoor localization methodology that aims to deploying RFID technologies in achieving accurate location-aware undertakings with real-time computation. The proposed algorithm introduces means to improve the accuracy of the received RF signals. Optimal settings for the parameters in terms of reader and reference tag properties were investigated through simulations and experiments. The experimental results indicate that our indoor localization methodology is promising in applications that require fast installation, low cost and high accuracy.