If you are denied boarding against your will, you are owed compensation, a refund or re-routing, and care (Art. 4 Reg. 261/2004).
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A confirmed reservation, presenting yourself on time for check-in or at the gate, and no reasonable grounds for refusal (such as missing travel documents, safety or health). If you volunteer to give up your seat in exchange for benefits, you waive the compensation. Do not sign anything at the gate you do not agree with.
With denied boarding the claim arises directly under Art. 4(3). There is no 3-hour threshold. The amount may be halved if a replacement flight gets you there only slightly later.