Then, after waiting morethan 2 months I decided to start over with a new domain because I reduced the keyword density, reduced onpage seo but nothing helped. I deleted entire content and removed all pages except homepage from google. Then I bought an EMD and uploaded the content to it. At the same time I uploaded a 500 word article to the old domain's homepage and added a policy page.
Now its almost 3 weeks. New site is nowhere in SERP. But since somedays, as per serpfox my old site is ranking in 27# th position for a keyword and #120 th postiotn for another keyword. Other 2 keywords were also ranked yesterday at around 150 th position but now disappeared. That 2 page site has only 1 page of content now with around 8% keyword density (it was around 6% when penalized).
WMT was showing around 1800 links previously. Now droped to 710 total links.
So is it recovering? Should I replace the content from new site to old site?
Thanks in advance.
Forgot to add. My site is not showing anywhere when I search for my brand name since it penalized. Is it indicates a penalty?