This is my first project in Android Studio, and the code of my apps are not obfuscated.
Im using this configuration in build.gradle file:
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!