Try renaming your 'proguard-rules.txt' file to 'proguard-android.txt' and remove the reference to 'proguard-rules.txt' in your gradle file. The getDefaultProguardFile(...) call references a different default proguard file, one provided by Google and not that in your project. So remove this as well, so that here the gradle file reads:
You can change the name of your file as you want. After configuration use one of the three options available to generate your build as per the buildType
Go to gradle task in right panel and search for assembleRelease/assemble(#your_defined_buildtype) under module tasks
Go to Build Variant in Left Panel and select the build from drop down
Go to project root directory in File Explorer and open cmd/terminal and run
Linux ./gradlew assembleRelease or assemble(#your_defined_buildtype)
Windows gradlew assembleRelease or assemble(#your_defined_buildtype)
You can find apk in your module/build directory.
More about the configuration and proguard files location is available at the link
You're probably not actually signing the release build of the APK via the signing wizard. You can either build the release APK from the command line with the command:
./gradlew assembleRelease
or you can choose the release variant from the Build Variants view and build it from the GUI:
The other answers here are great references on using proguard. However, I haven't seen an issue discussed that I ran into that was a mind bender. After you generate a signed release .apk, it's put in the /release folder in your app but my app had an apk that wasn't in the /release folder. Hence, I spent hours decompiling the wrong apk wondering why my proguard changes were having no affect. Hope this helps someone!