There is a way to check if your website is penalizedFirst their is no tool to know your website is penalized or not.
If Your Website is penalized than your keyword ranking will be droped instantly.
site: www.yourdomain.com
It says right in the article...Hello SEO Pub
Have a wonderful day.
Its true that I have been seen also Google webmaster tool have manual penalty identification system. But kindly check this article where I have got the ideas to write on here. Check: DigitalmarketingPro
Hope you will get your answer.
Thanks
Centurion
#2 Algorithmic Penalty: This is the most common type and it is automatic. Algorithmic penalties are not reported to webmaster tools and there is no option to fill in a reconsideration request.
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